Suppose a Firm Finds That It Must Raise Wages for All

question 35

Multiple Choice

Suppose a firm finds that it must raise wages for all of its workers every time it tries to expand its workforce.This means

• A)It will produce more than it would in a competitive labor market.
• B)The marginal factor cost curve is below the average cost of labor curve.
• C)The firm has market power.

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Definitions:

Periodic Inventory System

A periodic inventory system is an accounting method where inventory and cost of goods sold are calculated at set intervals, such as monthly or annually.

FIFO

A method of inventory valuation where the first items purchased are the first ones to be sold.

LIFO

A method of inventory valuation where the last items added to inventory are the first ones to be used or sold, standing for Last In, First Out.

Weighted-Average

A calculation method that takes into account the varying degrees of importance of the numbers in a dataset.