Suppose Jodi's Widget Business Is Using Two Inputs,labour and Capital

question 35

Multiple Choice

Suppose Jodi's widget business is using two inputs,labour and capital.If the price of labour increases,which of the following will happen?

• A)Jodi will shut down her business.
• B)The firm's average total cost curve will shift upward.
• C)The firm's marginal cost curve will remain unchanged.
• D)Jodi will hire more labour.
• E)The firm's average fixed cost curve will shift upward.

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Definitions:

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Distribution Center

A warehouse or specialized facility where goods are stored, managed, and then distributed to retailers or directly to customers.

Technologically Feasible

A state in which a new technology has been developed to the point where it is operational and can be reliably produced or implemented.

General Release

A legal agreement whereby one party releases another from any claims or liabilities, often used in settlements or upon the termination of employment.