When output increases from 20 to 30 units the total cost increases from $500 to $600. Assuming the fixed cost is $200, which of the following is true? a. Average total cost falls b. The production cost per unit is increasing c. Average fixed costs rise d. Marginal cost is equal to fixed cost

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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When output increases from 20 to 30 units the total cost increases from $500 to $600. Assuming the fixed cost is $200, which of the following is true?

a.

Average total cost falls

b.

The production cost per unit is increasing

c.

Average fixed costs rise

d.

Marginal cost is equal to fixed cost

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