A firm analyzes the effects of raising its current level of output and finds that doing so will cause its average total cost to increase. If the firm pays both fixed and variable costs of production, which of the following must be true? (Check all that apply)   A. The effect of average variable cost increasing dominates the effect of average fixed cost decreasing   B. The marginal cost is greater than the average total cost   C. The marginal cost curve is less than the average total cost   D. The effect of average fixed cost decreasing dominates the effect of average variable cost increasing

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Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.