Assume That Labor Is the Variable Input for a Firm

Multiple Choice

Assume that labor is the variable input for a firm.Which of the following will occur if the wage rate increases?

A) Its average variable cost,average fixed cost,average total cost,and marginal costs will increase.
B) Its average variable cost and average total costs will increase and profits will decrease.
C) Its marginal cost,average total costs,and output will increase.
D) Its marginal cost and average variable costs will increase.