When total input costs rise slower than the total units of output produced, then the per-unit production costs:
A) Will decrease
B) Will increase
C) Would be unaffected
D) May either increase or decrease

Question

Quizplus · Accepted Answer

If total input costs are rising slower than the output produced, it means that the cost per unit of input is decreasing. Therefore, the overall cost of production is decreasing, leading to a decrease in per-unit production costs.

When Total Input Costs Rise Slower Than the Total Units