Assume That Labor Is a Variable Input

question 121

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:

Scolded

Reprimanded or criticized harshly.

Idiom

An idiom is a phrase or expression whose meaning cannot be understood from the literal definitions of its individual words but represents a figurative, non-literal meaning known to speakers of the language.

Adhere

To stick firmly to a surface or belief, to follow strictly a set of rules or guidelines.

Rude People

Individuals who display impolite, discourteous, or offensive behaviors towards others.