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

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 _____ costs would _____.

A) average fixed;increase
B) average total;decrease
C) marginal;decrease
D) average variable;decrease