Which of the Following Statements Is True About Marginal Analysis

Multiple Choice

Which of the following statements is true about marginal analysis?

A) Fixed costs vary with changes in the number of units sold.
B) Total cost is the sum of average fixed costs and average variable costs times the quantity produced.
C) Average variable cost equals variable cost times number of units sold.
D) Average fixed cost increases as the number of units produced increases.
E) Marginal cost equals fixed costs minus variable costs.