Suppose a Fishing Boat Currently Brings 10,000 Fish to Market

Multiple Choice

Suppose a fishing boat currently brings 10,000 fish to market and earns a profit of $40,000 when the price of fish is $8. Suppose the boat dealer had overcharged the boat owner for the boat. Upon receiving a refund of $25,000 from the dealer, what will happen to the ATC of producing 10,000 fish?

A) increases by $25
B) increases by $2.50
C) does not change
D) decreases by $2.50
E) decreases by $25