Last spring, Coil Spring Co. reported that average fixed costs had increased but average variable costs were unchanged. This indicates that .

Group of answer choices

output is declining

marginal costs are less than average variable cost but greater than average cost

marginal costs have increased

fixed costs have increased

Theo’s Tree Trimming Service reported total revenue of $100,000 with explicit costs of $20,000. The opportunity cost of labor (an implicit cost) is $15,000. What is Theo’s economic profit?

Group of answer choices

$80,000

$65,000

$100,000

$85,000