Firm X's total fixed costs are $1,000. Its total variable costs of producing 100 units are $2,000, and its total variable costs of producing 200 units are $4,000. Which of the following will happen to firm X's average costs as it increases output from 100 to 200 units?

Using the quantity equation MV = PY, which of the following might happen if the money supply increases?

A. Velocity is constant, prices rise, and total is constant. B. Velocity increases, prices are constant, and total output is constant. C. Velocity is constant, prices fall, and total output is constant. D. Velocity rises, prices fall, and total output is constant.

Average cost

a. is always larger than marginal cost. b. declines for some range of output, hits a minimum, and then increases. c. is always smaller than marginal cost. d. is total cost/price of the product.