For production levels of less than 1500 units, the variation of the average cost of production per unit has the following relationship with the volume of production:

decreases uniformly

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increases uniformly

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decreases, then increases and then increase again

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None of these

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Solution

The correct option is D None of these
It can be calculated that the average cost decreases from 0 to 300 units, then increases for the the 301st unit, then decreases till the 800th unit and then increases till the 801st unit and then decreases again. Therefore, the correct answer is option (d)

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For production levels of less than 1500 units, the variation of the average cost of production per unit has the following relationship with the volume of production:

The correct option is D None of theseIt can be calculated that the average cost decreases from 0 to 300 units, then increases for the the 301st unit, then decreases till the 800th unit and then increases till the 801st unit and then decreases again. Therefore, the correct answer is option (d)

The correct option is D None of these
It can be calculated that the average cost decreases from 0 to 300 units, then increases for the the 301st unit, then decreases till the 800th unit and then increases till the 801st unit and then decreases again. Therefore, the correct answer is option (d)