Fernando charges the restaurant Flaming Fernando's $1,000 annually for use of his name. If Fernando increases the fee for use of his name
A) the restaurant's average fixed cost, average variable cost, average total cost, and marginal cost curves all shift upward.
B) the restaurant's average fixed cost, average total cost, and marginal cost curves shift upward.
C) the restaurant's average variable cost, average total cost, and marginal cost curves shift upward.
D) the restaurant's average fixed cost and average total cost curves shift upward.

Question

Quizplus · Accepted Answer

The increase in the fee for using Fernando's name is a fixed cost, so it affects the average fixed cost and average total cost, but not the average variable cost or marginal cost.

Fernando Charges the Restaurant Flaming Fernando's $1,000 Annually for Use