Engineers for the Giffen Record Company Determine That a 30

Multiple Choice

Engineers for The Giffen Record Company determine that a 30% increase in all compact disc inputs will cause a larger percentage increase in output. Assuming that input prices remain constant, you correctly deduce that such a change in inputs will cause ________ as output increases.

A) average costs to increase
B) average costs to decrease
C) average costs to remain constant
D) marginal costs to increase