Suppose Jodi's Widget Business Is Using Two Inputs, Labour and Capital

Multiple Choice

Suppose Jodi's widget business is using two inputs, labour and capital. Which of the following would happen if the price of labour increased?

A) Jodi would hire more labour.
B) The firm's marginal cost curve will remain unchanged.
C) The firm's average total cost curve will shift upward.
D) The firm's average fixed cost curve will shift upward.
E) Jodi will shut down her business.