Consider the effect on costs of an increase in wages in an economy. What is the increase likely to do?
A. Increase short-run average costs, but not increase long-run average costs.
B. Increase short-run average costs and long-run average costs.
C. Increase long-run average costs, but not increase short-run average costs.
D. Increase neither short-run nor long-run average costs; businesses will use less labor and more capital.