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

Quizplus · Accepted Answer

A decrease in the cost of a variable input, like wages, reduces the average variable cost, shifting the average variable cost curve downward.

The Cost of a Variable Input, Such as the Wage