Question

Which of the following statements is CORRECT with respect to variable cost per unit? It will decrease as production decreases It will remain the same as production levels change It will increase as production decreases It will decrease as production increases

Answer 1

It will decrease as production decreases

Step-by-step explanation:

When the cost are variable, they are bound to the production.

If production increase, total variable cost increase.

if production decerase, total variable cost decrease.

if production keeps at the same value, total variable cost ermains at the same value.