Question

18. In a perfectly competitive firm, at the current level of output, we know that P = MR = MC >AC > AVC. We can tell from this information that if the output of this firm increases by a little bit: (A) average cost is rising, average variable cost is rising, average fixed cost is falling, and marginal cost is rising (B) average cost is falling, average variable cost is falling, average fixed cost is falling, and marginal cost is falling (C) average cost is falling, average variable cost is rising, average fixed cost is falling, and marginal cost is falling (D) average cost is falling, average variable cost is falling, average fixed cost is rising, and marginal cost is falling (E) average cost is rising, average variable cost is rising, average fixed cost is falling, and marginal cost is falling (F) average cost is rising, average variable cost is rising, average fixed cost is rising, and marginal cost is rising (G) average cost is rising, average variable cost is falling, average fixed cost is falling, and marginal cost is rising (H) average cost is falling, average variable cost is rising, average fixed cost is falling, and marginal cost is falling (1) none of the above