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

question 80

Multiple Choice

Suppose Jodi's widget business is using two inputs, labour and capital. Which of the following would happen if the price of labour increased?

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

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Definitions:

Structuralist

Structuralism is an approach in fields such as psychology which posits that elements of human culture must be understood in terms of their relationship to a larger, overarching system or structure.

Reductionist

A perspective or approach that simplifies complex phenomena by reducing them to their basic elements.

Unconscious Desires

Unconscious Desires are wishes, wants, or needs that an individual is not aware of but that influence behaviors and can be revealed through dreams, slip of the tongue, or psychoanalytical methods.

Mental Gestalts

Integrated patterns or configurations that arise from the psychological organization of thoughts, perceptions, or experiences.