Author Question: The cost of a variable input, such as the wage paid to workers, decreases. This decrease shifts the ... (Read 80 times)

anshika · **on:** Jun 29, 2018

The cost of a variable input, such as the wage paid to workers, decreases. This decrease shifts the

A) total fixed cost curve downward.
B) marginal product of labor curve downward.
C) average variable cost curve downward.
D) marginal product of labor curve upward.

Question 2

Because a subsidy raises marginal benefit, it can be used to eliminate the deadweight loss from overproduction.

Indicate whether the statement is true or false