Other things equal, if the fixed costs of a firm were to increase by $100,000 per year, which of the following would happen?

A. Marginal costs and average variable costs would both rise.
B. Average fixed costs and average variable costs would rise.
C. Average fixed costs and average total costs would rise.
D. Average fixed costs would rise, but marginal costs would fall.

*ANSWER: C. Average fixed costs and average total costs would rise.*