Refer to the information provided in Figure 7.9 below to answer the question(s) that follow. 
Figure 7.9Refer to Figure 7.9. The firm's isocost line would shift from CE to CD if
A. the firm's total expenditure on inputs decreased.
B. the price of capital rises.
C. the price of labor rises.
D. either the price of labor fell or the firm's total expenditure on inputs decreased.
Answer: C
You might also like to view...
The funds that polluters pay that gives them the right to discharge into the air or water a certain amount of pollution are
A) special subsidies. B) regulation fees. C) external costs. D) effluent fees.
According to Nobel Laureate Simon Kuznets, the greatest increase in output and economic growth comes from changes in the _____
a. quantity of resources b. quantity of natural resources (land) c. quantity of labor d. quality of resources e. quantity of capital
A higher interest rate will:
What will be an ideal response?
A government action that can help correct positive externalities is
A. an effluent fee charged to producers of the good that provides external benefits. B. a subsidy to consumers of the good that provides external benefits. C. a tax on producers of the good that provides external benefits. D. regulations aimed at reduced production by sellers of the good that provides external benefits.