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The Toys-R-Danger-Us Toy Company Can Produce 500 Water Pistols for a Total

Question 115

Multiple Choice

The Toys-R-Danger-Us Toy Company can produce 500 water pistols for a total cost of $1, 400.If the variable cost of producing 500 water pistols is $1, 300, then


A) fixed cost must be $100
B) marginal cost must be $1, 300
C) marginal cost must be increasing
D) average variable cost must be decreasing
E) average fixed cost must be constant

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