Jasper United Is a Young fiRm That Expects to See

Multiple Choice

Jasper United is a young firm that expects to see their sales quantity increase exponentially over the next ten years due to their product innovation. Given this, management has decided that the
firm should invest heavily in equipment and facilities capable of producing large quantities of output
At a low marginal cost. This decision will result in relatively _____ costs per unit and _____ costs
Per unit.

A) High fixed; high variable.
B) High fixed; low variable.
C) High fixed; zero variable.
D) Low fixed; high variable.
E) Low fixed; low variable.