Refer to the information provided in Figure 7.8 below to answer the question(s) that follow.  Figure 7.8Refer to Figure 7.8 The firm's isocost line could shift from AB to CD if

A. the price of capital increased.
B. the price of capital and labor each decreased by 33%.
C. the firm's total expenditures decreased by 25%.
D. the firm's total expenditures increased by 33% or the price of capital and labor each decreased by 25%.


Answer: D

Economics

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