Assume a firm faces these costs: total cost of capital = $4,000; price paid for labor = $20 per labor unit; and price pa

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Assume a firm faces these costs: total cost of capital = $4,000;
price paid for labor = $20 per labor unit; and price paid for raw
materials = $8 per raw-material unit. Originally the firm produced
2,000 units of output by combining its fixed capital with 200 units
of labor and 500 units of raw materials. Now the firm improves its
production process so that it can produce 3,000 units of output by
combining its fixed capital with 100 units of labor and 500 units
of raw materials. What happened to total cost?
Multiple Choice
TC increased by $2,000
TC decreased by $2,000
TC decreased by $4,000
TC remained unchanged