If the marginal cost of producing a good is increasing as a firm produces more of the good, then which of the following must be TRUE?

Which of the following statements is correct?

A. In a first-best world, imports would not cause import-competing firms to go out of business and workers in these industries to lose their jobs. B. In a first-best world, if rising import competition is driving domestic producers out of business, the government must intervene to protect the domestic firms. C. The most efficient policy to maintain production in import-competing industries is to impose barriers on imports. D. If we want to help workers who lose jobs when a domestic industry shrinks, the specificity rule suggests that the government should provide subsidies to those workers to retrain or to relocate to areas where jobs are available.

The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit.Given the above, if the firm produces 40 units of output, what is total variable cost?

A. $60 B. $100 C. $1.50 D. $2,400 E. none of the above