Which of the Following Statements Is True About Marginal Analysis

question 85

Multiple Choice

Which of the following statements is true about marginal analysis?

• A) Fixed costs vary with changes in the number of units sold.
• B) Total cost is the sum of average fixed costs and average variable costs times the quantity produced.
• C) Average variable cost equals variable cost times number of units sold.
• D) Average fixed cost increases as the number of units produced increases.
• E) Marginal cost equals fixed costs minus variable costs.