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Cindy Operates Birds-R-Us, a Small Store Manufacturing and Selling 100

Question 203

Multiple Choice

Cindy operates Birds-R-Us, a small store manufacturing and selling 100 bird feeders per month.Cindy's monthly total fixed costs are $500, and her monthly total variable costs are $2,500.If for some reason Cindy's fixed cost fell to $400, then her:


A) average fixed costs would increase.
B) average total costs would decrease.
C) marginal costs would decrease.
D) average variable costs would decrease.

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