a) Are hourly employment costs a fixed or variable cost?
b) How is the average total cost curve affected by these changes in costs? In the chart you found, what has been the trend in employment costs since 2002?
c) What is the likely implication of the trend in employment cost on profits?
1. Hourly employment costs are a variable cost. As an hourly worker works one more ...
solution gives an overview for fixed cost and variable cost