Author Question: The demand curve for low-skilled labor lies to the left of the demand curve for high-skilled labor ... (Read 384 times)

debasdf · **on:** Jun 29, 2018

The demand curve for low-skilled labor lies to the left of the demand curve for high-skilled labor because

A) there are more high-skilled workers than low-skilled workers.
B) high-skilled workers require more compensation than low-skilled workers.
C) high-skilled workers are more productive than low-skilled labor.
D) firms do not see any difference between high-skilled labor and low-skilled labor.

Question 2

The above figure shows the costs at Barney's Bagel Bakery. As the amount of output increases, the AVC curve approaches the ATC curve because the

A) TFC curve (not shown) slopes down.
B) AFC curve (not shown) slopes down.
C) MC curve is rising.
D) AVC curve is rising.