Author Question: If wages a firm pays it workers increase, then A) the firm's long-run average cost curve shifts ... (Read 60 times)

mydiamond · **on:** Jun 29, 2018

If wages a firm pays it workers increase, then

A) the firm's long-run average cost curve shifts upward.
B) the firm moves rightward along its long-run average cost curve to where it has diseconomies of scale.
C) the firm's long-run average cost curve does not shift and there is no movement along the long-run average cost curve.
D) the firm moves rightward along its long-run average cost curve but not necessarily to where it has diseconomies of scale.

Question 2

A consumer is in equilibrium when the consumption point is on

A) the budget line.
B) an indifference curve.
C) the highest indifference curve that just touches the budget line.
D) none of the above.