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Generally as production increases the cost per unit will decrease because the fixed costs associated with the production of a particular product such as rent or loan payments for facility space will be spread across more units. As is the case for most fixed costs, not just rent or a loan payment. There are many different fixed and variable costs that go into manufacturing so that's just a general answer and by no means the complete answer or basis of an answer for your homework.

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Q: What is the relationship between price of personal computers and the production of personal computers?
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