An increase in the wage rate ______
A. shifts the average total cost curve and the marginal cost curve upward
B. shifts the average fixed cost and average variable cost curve upward
C. increases average variable cost but does not change marginal cost
D. does not change average variable cost but increases average total cost
A Wages are a variable cost, so an increase in the wage rate in-creases the average total cost and the marginal cost.
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In the late 1960s, the Friedman-Phelps "natural rate hypothesis" predicted from the microeconomic structure of the labor market that the long-run Phillips Curve is ________, while macroeconomic events caused a very ________ acceptance of this ch
in aggregate supply theory. A) horizontal, rapid B) horizontal, gradual C) vertical, rapid D) vertical, gradual
The marginal cost of hiring the 7th worker is
a. $400 b. $1000 c. $200 d. $0