If total fixed cost increases, which of the following will NOT change?
A) Average fixed cost
B) Marginal cost
C) Average total cost
D) Total cost
E) ALL costs increase when total fixed cost increases.

Question

Quizplus · Accepted Answer

Marginal cost is based solely on variable costs, so it will not be affected by changes in fixed costs. All other costs (average fixed cost, average total cost, and total cost) will increase when total fixed costs increase.

If Total Fixed Cost Increases, Which of the Following Will