Refer to Exhibit 11-5. Which of the following is true? Units of Output Variable Cost (dollars) Total Cost (dollars) 0 0 80 1 60 140 2 100 180 3 120 200 4 160 240 5 210 290 6 300 380
A.
The third unit has the lowest marginal cost.
B.
The sixth unit has the highest marginal cost.
C.
Average variable cost falls for the first 5 units, then rises with the 6th unit.
D.
All of the above are true.