Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) Average fixed cost continually declines as output increases.
B) Marginal cost is equal to the change in total cost divided by the change in quantity of output.
C) The law of diminishing marginal returns states that, in the long run, as ever larger amounts of a variable input are combined with fixed inputs, eventually the marginal physical product of the variable input will decline.
D) The vertical distance between the AVC curve and the ATC curve declines as more output is produced.