Assume That Labor Is a Variable Input

question 187

Multiple Choice

Assume that labor is a variable input. The average wage of workers increases in a purely competitive industry. This change will result in a(n)

• A)increase in marginal cost for firms in the industry and an increase in the industry supply curve.
• B)decrease in marginal cost for firms in the industry and a decrease in the industry supply curve.
• C)decrease in marginal cost for firms in the industry and an increase in the industry supply curve.
• D)increase in marginal cost for firms in the industry and a decrease in the industry supply curve.

---

Definitions:

Significance

The importance or meaning of something, especially in terms of its impact or relevance to a specific context or field.

Well-being

The state of being comfortable, healthy, or happy, encompassing physical, mental, and emotional health.

Self-actualization

Bringing to fruition or realizing one’s innate talents and potential, seen as a core drive or necessity in people.

Economic Security

The condition of having stable income or other resources to support a standard of living now and in the foreseeable future.