An increase in the wage rate ______. A. shifts the average ...

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An increase in the wage rate ______.
 
  A. shifts the average total cost curve and the marginal cost curve upward
  B. shifts the average fixed cost and average variable cost curve upward
  C. increases average variable cost but does not change marginal cost
  D. does not change average variable cost but increases average total cost

Question 2

Which of the following would shift a nation's production possibilities frontier outward?
 
  A) an increase in demand for the nation's products
  B) discovering a cheaper way to convert sunshine into electricity
  C) a decrease in the unemployment rate
  D) a law requiring workers to retire at age 50

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Answer to Question 1

A Wages are a variable cost, so an increase in the wage rate in-creases the average total cost and the marginal cost.

Answer to Question 2

B