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MrD's Barbeque of Pickwick,TN

Question 43

Multiple Choice

Mr.D's Barbeque of Pickwick,TN.produces 10,000 dry-rubbed rib slabs per year.Annually Mr.D's fixed costs are $50,000.The average variable cost per slab is a constant $2.Suppose Mr.D smoked 10% more ribs.


A) Total cost would fall,but by less than 10%.
B) Average total cost would drop.
C) Total costs would rise by 10%.
D) Marginal cost would be negative.

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