Question A20

The table below shows the relationship between a firm's output and its

production costs.

Output

(Units)

100

200

300

ABCD

Average Variable Average Total Costs

Costs ($)

($)

800

550

450

500

400

350

When the firm increases its output from

A

100 to 200 units, average fixed costs rise by $300.

100 to 200 units, average fixed costs fall by $250.

200 to 300 units, average fixed costs fall by $100.

100 to 300 units, average fixed costs fall by $200

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