Answer (B) is correct . Variable cost per unit remains constant in the short run regardless of the level of production. This is in contrast with variable costs in total, which vary directly and proportionally with changes in volume.
Answer (A) is incorrect because Average total cost per unit declines steadily as production volume increases over the relevant range.
Answer (C) is incorrect because Fixed cost per unit varies indirectly with the activity level.
Answer (D) is incorrect because Variable costs in total vary directly and proportionally with changes in volume.
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