Suppose There Are Fixed Costs and Marginal Costs That Are

Multiple Choice

Suppose there are fixed costs and marginal costs that are constant. Then we know that

A) average total costs are also constant.
B) average variable costs decrease continuously as output increases, and lie above the marginal cost curve.
C) average total costs decrease continuously as output increases, and lie above the average variable cost curve, which also is decreasing continuously.
D) average total costs decrease continuously as output increases, and lie above the average variable cost curve, which is constant.