An Increase in the Wage Rate Will Have a Greater

An increase in the wage rate will have a greater effect on average costs

A) the larger the proportion labour costs are of total costs and the easier it is to substitute capital for labour.
B) the larger the proportion labour costs are of total costs and the harder it is to substitute capital for labour.
C) the greater the diminishing marginal product of labour is.
D) the greater returns to scale are.