Refer to Scenario 7.1. For 100 cookies, the average total cost is:

A) falling.
B) rising.
C) neither rising nor falling.
D) less than average fixed cost.

Average Total Cost

The total cost of production divided by the number of units produced, representing the cost per unit.

Marginal Cost

The cost added by producing one extra item of a product, integral for decision-making in production.

Cookies

Small, sweet baked treats, often containing flour, sugar, and some type of oil or fat, sometimes including other ingredients such as chocolate chips or nuts.