The appropriate choice is option (b). If the business doubles its volume, the overall cost per unit will go down.
Fixed costs are not affected by the volume of output. Within the appropriate range, the total fixed costs stay constant. However, as output rises, the fixed cost per unit falls since the same fixed costs are shared over more units.
Per unit produced, the variable cost of production is a fixed sum. Variable costs will rise as output and production volume do as well. On the other hand, the variable costs related to production will therefore go down if fewer products are created.
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