Shania Dolls Have Become a Major Competitor of Doll Companies

Multiple Choice

Shania Dolls have become a major competitor of doll companies like Mattel. When the company produces 1,500 dolls, it incurs $6,000 in costs. When it produces 1,501 dolls, the costs go up to $6,004. This $4 difference is an example of

A) marginal cost.
B) fixed cost.
C) average variable cost.
D) total cost.
E) average total cost.