In an industry characterized by perfect competition, wages are increasing for all firms (very realistic right now in many countries).
1. How will this affect AVC, AFC, AC and MC curves for "some" firm?
2. What will happen to price and quantity in the market?
3. What will happen to price, quantity and economic profits for "some" firm?
4. What are likely long-run results?

Answer rating: 100% (QA)

Answer 1 This will shift the AVC AFC and MC curves to the right and the AC curve will shift upward 2 ... View the full answer