The increased use of automation and less use of the work force in companies has caused a trend towards an increase in

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The increased use of automation and less use of the work force in companies has caused a trend towards an increase in

Answer : Increase in fixed cost and a decrease in variable costs

Explanation:

In the increased use of automation and less use of the workforce in companies and firms will lead to an increase in the fixed cost of production incurred by the company because acquisition of Machines for production is classified as a fixed cost and a relative decrease in the variable cost of production.

The variable cost of production is the production cost incurred in the production of an additional unit of product produced .since the production is done by automation hence the cost of hiring an additional workforce to produce an additional product will be eliminated ( decrease in variable cost )

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