When there are fixed costs and a constant marginal cost a. The average fixed cost function is flat b. The average variable cost function is flat, and the average cost function is increasing c. The average cost function intersects the marginal cost function at a minimium of the average cost function d. The average variable cost function is increasing, and the average cost function is decreasing e. The average variable cost function is flat, and the average cost function is decreasing

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter7: Production Economics
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When there are fixed costs and a constant marginal cost

a. The average fixed cost function is flat

b. The average variable cost function is flat, and the average cost function is increasing

c. The average cost function intersects the marginal cost function at a minimium of the average cost function

d. The average variable cost function is increasing, and the average cost function is decreasing

e. The average variable cost function is flat, and the average cost function is decreasing 

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