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

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Definitions:

Price Discrimination

The selling of a product to different buyers at different prices when the price differences are not justified by differences in cost.

Tying Contracts

Agreements where the seller of a product or service requires the buyer to also purchase a secondary product or service.

Sherman Act

A landmark federal statute in the field of U.S. antitrust law passed in 1890 to protect competition and prohibit monopolistic practices.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at promoting competition and preventing unfair business practices.