Which of the Following Increases as Volume of Activity Decreases

question 54

Multiple Choice

Which of the following increases as volume of activity decreases?

• A) Fixed cost per unit
• B) Variable cost per unit
• C) Total fixed cost
• D) Total variable cost

---

Definitions:

Mississippi Gulf Coast

A region along the southern edge of Mississippi bordering the Gulf of Mexico, known for its natural beauty, tourism, and cultural heritage.

Market Modification

The process of changing market elements, including product features, pricing, and distribution methods, to better meet consumer needs or adapt to competitive pressures.

Product Bundling

The practice of selling multiple products or services together as a single combined package, often at a reduced price compared to purchasing them separately.

Separate Products

The practice of distinguishing products in the market by features, quality, or price to cater to different consumer segments.