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Use the following to answer questions: Use the following to answer questions:   -(Table: Cakes)  Look at the table Cakes. Pat is opening a bakery to make and sell special birthday cakes. She is trying to decide how many mixers to purchase. Her estimated fixed and average variable costs if she purchases one, two, or three mixers are shown in the table. Assume that average variable costs do not vary with the quantity of output. If Pat purchases two mixers, her average fixed cost _____ in the range of output between 100 and 400 cakes. A)  increases B)  decreases C)  remains the same D)  can't be calculated
-(Table: Cakes) Look at the table Cakes. Pat is opening a bakery to make and sell special birthday cakes. She is trying to decide how many mixers to purchase. Her estimated fixed and average variable costs if she purchases one, two, or three mixers are shown in the table. Assume that average variable costs do not vary with the quantity of output. If Pat purchases two mixers, her average fixed cost _____ in the range of output between 100 and 400 cakes.


Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced.

Lawn-mowing

The process of cutting the grass in a lawn to maintain its appearance and health.

Variable Costs

Costs that vary directly with the level of production output, such as materials and labor.

Lawn-mowing

The action of cutting the grass in a yard or garden to maintain its appearance and health.

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