The Firm Negotiates a New Agreement with Its Workers for Lower

question 226

Multiple Choice

The firm negotiates a new agreement with its workers for lower wages. The ATC curve should be __________ and the AFC curve should be __________ after the agreement goes into effect.

• A)lower; lower
• B)lower; unchanged
• C)higher; higher
• D)lower; higher
• E)unchanged; lower

---

Definitions:

Cell Phone Covers

Cell Phone Covers are protective and decorative accessories designed to encase and safeguard mobile phones.

Cash Payments Journal

An accounting journal used to record all cash payments made by a company, including expenses and purchases.

Prepaid Insurance

Payments made for insurance coverage that has not yet been incurred, recorded as an asset on the balance sheet.

Supplies Account

An account used in accounting to track the amount spent on supplies that are used in the business operations.