Which of These Cases Would Likely Result from an Increase

question 264

Multiple Choice

Which of these cases would likely result from an increase in minimum wage?

• A) an increase in the price of hamburgers
• B) an increase in unemployment among teenagers
• C) incomes increase for those who keep minimum-wage jobs
• D) All of the answers are correct.

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Definitions:

Average Total Cost

Average Total Cost is the total cost of production divided by the total quantity produced, reflecting the cost per unit of output.

Average Fixed Cost

This is the total fixed costs of production divided by the number of units produced, reflecting how these costs spread out over the output.

Average Variable Cost

The total variable cost divided by the quantity of output produced.

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced, illustrating how fixed costs per unit decrease as production increases.