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

question 35

Multiple Choice

Suppose Jodi's widget business is using two inputs,labour and capital.If the price of labour increases,which of the following will happen?

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

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Definitions:

Intergenerational Income Transfer

Financial assets or wealth transferred from one generation to another, impacting the economic stability and opportunities of the recipient generation.

Compulsory Retirement

The mandatory cessation of employment for individuals once they reach a certain age set by an employer or the government.

Income Program

A government or institutional initiative designed to provide monetary assistance to individuals or families in need.

Forced-Savings Program

A government or employer initiative requiring individuals to save a portion of their income to foster economic stability or for future use.