A Decrease in the Real Wage Would Result in a

question 94

Multiple Choice

A decrease in the real wage would result in a

• A)movement along the labour demand curve,causing an increase in the number of workers hired by the firm.
• B)shift of the labour demand curve,causing an increase in the number of workers hired by the firm.
• C)movement along the labour demand curve,causing a decrease in the number of workers hired by the firm.
• D)shift of the labour demand curve,causing a decrease in the number of workers hired by the firm.

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Definitions:

Average Total Cost

The total cost per unit of output, calculated by dividing the total cost of production by the quantity of output.

Marginal Cost

The additional cost incurred to produce one more unit of a good or service.

Variable Cost Curve

A graphical representation that shows how total variable costs change with variations in output volume, helping firms visualize cost dynamics related to production levels.

Fixed Labor Cost

Expenses that do not change with the level of production or sales, such as salaries that must be paid regardless of the company's level of output.