Problem
1. If the price of labor increases by 20 percent, but all other input prices remain the same, would the long-run total cost at a particular output level go up by more than 20 percent, less than 20 percent, or exactly 20 percent? If the prices of all inputs went up by 20 percent, would long-run total cost go up by more than 20 percent, less than 20 percent, or exactly 20 percent?
2. How would an increase in the price of labor shift the long-run average cost curve?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.