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Price changes are useful for matching the level of demand to the capacity of a facility. True or False

1 Answer

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Answer:

True

Step-by-step explanation:

It is true that price changes are useful for matching the level of demand to the capacity of a facility. This is called variable cost. Variable cost depends on the changing demand and therefore changes according to the units produced.

On the other hand, fixed costs are those that do not depend on the demand and the capacity of the facility. They continue regardless of the units produced in the facility.

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