Short-run cost curves would not be affected by an increase in the wage paid to a firms labor?

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1093675

2026-05-08 13:30

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Short-run cost curves would indeed be affected by an increase in the wage paid to a firm's labor, as labor is a variable cost in the short run. An increase in wages raises the firm's total variable costs, leading to higher average variable costs and potentially higher average total costs. This change would shift the cost curves upward, reflecting the increased expense of hiring labor. Therefore, it is incorrect to state that short-run cost curves would not be affected by wage increases.

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