Exhibit 7-21 
-For the three isocost lines shown in Exhibit 7-21 which of the following is true:
A) the ratio of the price of labor to the price of capital increases as the isocost lines get farther from the origin
B) the ratio of the price of labor to the price of capital gets smaller as the isocost lines ge farther from the origin
C) the ratio of the price of labor to the price of capital is the same
D) the wage rate gets larger as the isocost lines get farther from the origin
E) the price of capital gets larger as the isocost lines get farther from the origin
Correct Answer:
Verified
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