Engineers for the All-Terrain Bike Company Have Determined That a 15

Multiple Choice

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.

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