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

Question

Quizplus · Accepted Answer

Marginal cost is determined by the change in total cost as a result of a one-unit increase in output, and since total fixed cost does not impact this, marginal cost will not change. All other costs (total cost, average fixed cost, and average total cost) will increase when total fixed cost increases, so option E is incorrect.

If Total Fixed Cost Increases,which of the Following Will NOT