If a Firm's Total Cost Curve Is Defined by a Straight

Multiple Choice

If a firm's total cost curve is defined by a straight line that has a positive intercept that is equal to fixed costs, then

A) average cost is equal to marginal cost for all levels of output.
B) average cost is negatively sloped and marginal cost is horizontal.
C) both average cost and marginal cost are negatively sloped, but they are not equal to each other.
D) both average cost and marginal cost are horizontal, and average cost is below marginal cost at all levels of output.