1227EconomicsMedium
Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?
Aaverage costs to remain constant
Baverage costs to increase
Caverage costs to decrease
Dmarginal costs to increase
Correct answer
A. average costs to remain constant
Explanation
The correct answer is average costs to remain constant.