Assume that the relative prices of capital and labor have not changed. As a firm's expenditures for capital and labor decrease, its isocost line
A. rotates outward on the Y-intercept.
B. rotates outward on the X-intercept.
C. shifts in parallel to the original isocost line.
D. shifts out parallel to the original isocost line.
Answer: C
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Indicate whether the statement is true or false