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Economics Mcqs
Q
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?
AA. Average costs to remain constant
BB. Average costs to decrease
CC. Average costs to increase
DD. Marginal costs to increase
Correct Answer:
A. A. Average costs to remain constant