Assume That Labor Is a Variable Input

Multiple Choice

Assume that labor is a variable input. The average wage of workers increases in a purely competitive industry. This change will result in a(n)

A) increase in marginal cost for firms in the industry and an increase in the industry supply curve.
B) decrease in marginal cost for firms in the industry and a decrease in the industry supply curve.
C) decrease in marginal cost for firms in the industry and an increase in the industry supply curve.
D) increase in marginal cost for firms in the industry and a decrease in the industry supply curve.