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Use the Following to Answer Question 160 -Cindy Operates Birds-R-Us,a Small Store Manufacturing and Selling 100 Bird

Question 154

Multiple Choice

Use the following to answer question 160:  Table: Output and Marginal Cost  Output  Marginal Cost 1152103548512620\begin{array}{l}\text { Table: Output and Marginal Cost }\\\begin{array} { l c } \hline \text { Output } & \text { Marginal Cost } \\\hline 1 & 15 \\2 & 10 \\3 & 5 \\4 & 8 \\5 & 12 \\6 & 20 \\\hline\end{array}\end{array}
-Cindy operates Birds-R-Us,a small store manufacturing and selling 100 bird feeders per month.Her monthly total fixed costs are $500,and her monthly total variable costs are $2 500.If for some reason Cindy's fixed cost fell to $400,then her _____ costs would _____.


A) average fixed;increase
B) average total;decrease
C) marginal;decrease
D) average variable;decrease

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