6. Cost-curve shifters The following graph shows the average total cost (ATC) curve, average variable cost (AVC) curve, and average fixed cost (AFC) curve for Beth's Pizza Parlor when Beth pays her workers a wage of $15 per hour. ? ATC PRICE (Dollars per pizza) AVC AFC OUTPUT (Pizzas per day) Suppose the wage Beth pays her workers increases to $20 per hour. In the following table, indicate how each cost and curve is affected, if at all.Suppose the wage Beth pays her workers increases to $20 per hour. Increases, and therefore the curve shifts up In the folld d, if at all. Is unaffected, and therefore the curve does not shift Decreases, and therefore the curve shifts down Cost ATC AVC AFC7. Sunk costs and decision making Charles has plans to go to an opera and already.r has a $100 nonrefundable, nonexchangeable, and nontransferahle ticket. NOW Dina, whom Charles has wanted to date for a long time, asks him to a concert. Charles would prefer to go to the concert with Dina and forgo the opera, but he doesn't want to waste the $100 he spent on the opera ticket. From the perspective of an economist, if Charles decides to go to the opera, what has he just done? 0 Correctly ignored a sunk cost 0 Made an optimal choice 0 Incorrectly allowed a sunk cost to influence his decision 5. Economies and diseconomies of scale The following graph shows the short-run average total cost curves and the long-run average total cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average total cost curve (LRATC); for example, Q1 marks the point of tangency between ATC, and LRATC. The orange point on ATC, indicates the firm's current output level in the short run (02). (?) ATC ATC5 LRATC ATC 2 ATC3 ATC COST PER UNIT OUTPUTIn the long runr if the firm decide-5 to keep output at its initial level, what will it likely do? Q Shift to operate on ATE; Q Shutdown Q Stay on ATE] out decrease to the point touching {RATE Q Shift to operate on ATE; [liver which range of output levels do you nd economies of ecale? 00mg. 00mg; OothS 092mg Q Greater than 23