Question: Requirement 7 . Why does the average product cost decrease as production increases? The average product cost decreases as production volume increases because the company
Requirement Why does the average product cost decrease as production increases?
The average product cost decreases as production volume increases because the company is
adding more fixed costs
spreading its fixed costs
spreading its variable costs
over million more units. The company will be operating
less
more
efficiently so the average cost of making each unit decreases.
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