3 years ago

Based on the following cost data, what conclusions can you make about the costs of Product A and Product B?

Business

1 answer:

Basile [38]3 years ago

6 0

Answer:

The answer is D

Explanation:

Product A is a variable cost because variable cost(inputs) increases(decreases) with increase (decrease) units(output).

Whereas for product B;

Though, fixed cost is fixed across all units of output but as the total output increases, the average fixed cost decreases because the same amount of fixed costs now cover a larger number of output produced.

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