ECONOMICS

Detailed explanation-1: -b) False, as the volume increases, fixed cost per unit of output will fall. Variable costs are those that are a portion of the price per unit and remain the same per unit as volume increases.

Detailed explanation-2: -Understanding Variable Costs As the volume of production and output increases, variable costs will also increase. Conversely, when fewer products are produced, the variable costs associated with production will consequently decrease.

Detailed explanation-3: -Answer: False Variable cost is constant per unit and fixed cost varies per unit. In total, variable cost varies while fixed cost is constant.

Detailed explanation-4: -Variable Cost per unit decreases: The total cost line will decrease, as total Cost includes fixed Costs and variable Costs. As production increases, fixed cost per unit decreases, leading to a lower total cost relative to total production.

Detailed explanation-5: -This statement is True. Total variable costs by definition increase or decrease with the level of production and yet on a per-unit basis variable costs are constant.