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An increase in the price of fuel increases the average cost of production of fabric produced by the Houchen Textile Company, a competitive firm

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An increase in the price of fuel increases the average cost of production of fabric produced by the Houchen Textile Company, a competitive firm. As a result of the increase in the price of fuel,

a. average cost of production will increase and the profit-maximizing level of output will decline.

b. fixed costs of production will increase.

c. average cost of production will increase, as will the profit-maximizing level of output.

d. average cost of production will increase, but there will be no change in the profit-maximizing level of output.