Imagine That You Are an Entrepreneur, Making Designer T-Shirts in Your

Multiple Choice

Imagine that you are an entrepreneur, making designer t-shirts in your garage. Your total cost (in dollars) is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. As you increase your production of t-shirts, your average fixed cost ________ and your marginal cost ________.

A) decreases; increases
B) increases; decreases
C) decreases; stays the same
D) stays the same; increases