Engineers for the All-Terrain Bike Company Determine That a 10

question 143

Multiple Choice

Engineers for The All-Terrain Bike Company determine that a 10% increase in all inputs will cause an equal 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

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Definitions:

Lowest Terms

The simplest form of a fraction, where the numerator and the denominator are reduced to their smallest possible values.

Mixed Numbers

Quantities that combine a whole number with a fraction less than one.

Lowest Terms

The simplest form of a fraction, with both the numerator and denominator reduced to their smallest possible numbers.

Fractions

A mathematical expression representing a part of a whole, usually in the form of a numerator and a denominator.