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Angel Rodriguez Pulls Up in His 24-Foot Panel Truck in Front

Question 126

Multiple Choice

Angel Rodriguez pulls up in his 24-foot panel truck in front of Sezz Medi Brick Oven Pizza in Upper Manhattan. Even though it's the middle of the summer, he's delivering- firewood. He says even though fuel costs have doubled in the past year, it's still worth the premium he gets delivering ash and cherry to the captive and growing market in NYC. How would a decrease in gasoline prices affect Angel's short run costs?


A) Short run total costs would decrease.
B) Short run variable costs would increase.
C) Short run fixed costs would decrease.
D) Short run average variable costs would increase.

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