Fixed Costs Per Unit Increase as Production Levels Increase

question 14

True/False

Fixed costs per unit increase as production levels increase.

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Definitions:

Marginal Principle

A decision-making practice that involves considering the additional benefits or costs of a change in activity level, choosing to increase the level if the marginal benefits exceed marginal costs.

Resources

Assets, materials, or substances available for use in the production process, human activities, or for satisfying needs.

Economists

Professionals who study how societies use scarce resources to produce valuable commodities and distribute them among different people.

Opportunity Cost

Opportunity cost represents the value of the best alternative that is foregone when a choice is made between several mutually exclusive options.