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true.

as fixed costs remain the same with change in activity, the per unit price of each unit changes inversely with activity level.

rent is generally a fixed costs.

if rent is $10,000, and 100 units are produced, then the per unit price is $10 with respect to rent.

if rent is $10,000, and 200 units are produced, then the per unit price is $5 with respect to rent.

thus, as we produced more units, or as the activity level went up, the average costs per unit decreased.

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