As a firm attempts to expand production,it must ________ the wage it pays to attract additional help.This leads to ________ costs,making the long-run supply curve slope ________.
A) increase; higher; upward
B) increase; higher; downward
C) increase; lower; upward
D) decrease; lower; upward
E) decrease; higher; upward

Question

Quizplus · Accepted Answer

In order to attract additional help for expanding production, a firm must offer higher wages, which leads to increased costs. This scenario contributes to the long-run supply curve sloping upward, as higher production costs make supplying additional units of a good or service more expensive.

As a Firm Attempts to Expand Production,it Must ________ the Wage