As Production Increases, the Fixed Cost Per Unit

question 70

Multiple Choice

As production increases, the fixed cost per unit

• A) increases
• B) decreases
• C) remains the same
• D) either increases or decreases, depending on the variable costs

---

Definitions:

Construe Events

Interpreting or making sense of events by assigning meanings and significance to them.

Dissimilarities

The state or condition of not being alike, illustrating differences between entities in various aspects.

Mutually Exclusive

A condition or situation in which the occurrence of one event or state precludes the occurrence of another.

Human Nature

The general psychological characteristics, feelings, and behavioral traits shared by all humans.