Refer to the following:

-As you move from point A to point B,
A) output is unchanged.
B) cost is unchanged.
C) the rate at which the firm can substitute labor for capital while holding output constant decreases.
D) both a and b
E) both a and c

Question

Refer to the following:
 
-As you move from point A to point B,
A) output is unchanged. 
B) cost is unchanged. 
C) the rate at which the firm can substitute labor for capital while holding output constant decreases. 
D) both a and b 
E) both a and c

Quizplus · Accepted Answer

The image provided does not contain enough information to make a specific determination about output or cost, but it does suggest that the firm's ability to substitute labor for capital while holding output constant is decreasing as it moves from point A to point B.

Refer to the Following