Which of the Following Statements Is CORRECT

question 10

Multiple Choice

Which of the following statements is CORRECT?

• A) When the real wage increases, the labor supply curve shifts rightward.
• B) When the real wage increases, the labor supply curve shifts leftward.
• C) When the real wage decreases, the labor supply curve shifts leftward.
• D) None of the above statements are correct.

---

Definitions:

Selling Price

The amount at which a product or service is offered to the market.

Variable Cost

Expenses that change in proportion to the activity or volume of a business, such as raw materials and labor costs directly tied to production levels.

Average Variable Cost

This is the average amount of variable costs (costs that change with production levels) per unit produced.

Net Profits

The actual profit after working expenses not included in the calculation of gross profit have been paid.