Assume That a Firm's Total Cost of Producing an Output

Multiple Choice

Assume that a firm's total cost of producing an output of 2,000 units is currently $20,000.If output increases to 2,500 units,total cost increases to $50,000 and the price of inputs and technology remain unchanged.What will be the effect on average total cost?

A) Increase of $20
B) Decrease of $10
C) Increase of $10
D) No change