Answer
B. Average total cost and average fixed cost
Work Step by Step
A fixed cost is a cost in product that will not change with the amount of output produced.
In this question the 1000 dollars per year license fee is a one time fee that will be paid regardless if the pizza restaurant produces 1 or 10,000 pizzas. This is an example of a fixed cost
The addition of this fix cost will shift the average fixed cost curve because now the fixed cost of an average unit will cost more than it did before the 1000 dollar license fee.
The average total cost curve will also shift because the average total cost is made up of fixed and variable costs. Even though the variable costs will not change, the addition of a new fixed cost will cause the average total cost of each unit to increase.
