Costs curves can shift. If a firm negotiates a new labor contract with its workers to raise wages, the ATC and AVC curves will shift: upward to the left upward to the right downward to the left downward to the right

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
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Costs curves can shift. If a firm negotiates a new labor contract with its workers to raise wages, the
ATC and AVC curves will shift:
upward to the left
upward to the right
downward to the left
downward to the right
Transcribed Image Text:Costs curves can shift. If a firm negotiates a new labor contract with its workers to raise wages, the ATC and AVC curves will shift: upward to the left upward to the right downward to the left downward to the right
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