Total cost of production is the sum of total variable cost and total fixed cost. If the total fixed cost alone increases:
A. the average total cost curve shifts downward at all output levels.
B. the marginal cost curve shifts upward at all output levels.
C. the vertical distance between the average total cost curve and average variable cost curve increases at all output levels.
D. the average variable cost curve shifts upward at all output levels.
Answer: C
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