Costs that vary per unit but remain constant in total are:Question 4Select one:a.variable costsb.fixed costsc.incremental costsd.opportunity costs
Question
Costs that vary per unit but remain constant in total are:Question 4Select one:a.variable costsb.fixed costsc.incremental costsd.opportunity costs
Solution
The correct answer is b. Fixed Costs. Fixed costs are costs that do not change with the level of output in the short run. They remain constant in total but vary per unit as the level of output changes. For example, the rent for a factory or a retail space is a fixed cost because it stays the same whether the business produces one unit or thousands of units.
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