Engineers for the Giffen Record Company Have Determined That a 35

Multiple Choice

Engineers for The Giffen Record Company have determined that a 35% increase in all compact disc inputs will cause a 45% 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