refer to the following diagram

-The firm's isoprofit curve,P,is shown as concave to the origin,reflecting the assumption that:
A)the firm faces a constant trade-off between job safety and wages
B)each successive increase in job safety comes at a decreasing expense to the firm
C)each successive increase in job safety requires a smaller drop in wages to maintain normal profits
D)each successive increase in job safety comes at an increasing expense to the firm

Question

refer to the following diagram

-The firm's isoprofit curve,P,is shown as concave to the origin,reflecting the assumption that:
A)the firm faces a constant trade-off between job safety and wages 
B)each successive increase in job safety comes at a decreasing expense to the firm 
C)each successive increase in job safety requires a smaller drop in wages to maintain normal profits 
D)each successive increase in job safety comes at an increasing expense to the firm

Quizplus · Accepted Answer

The concave shape of the isoprofit curve indicates that each successive increase in job safety comes at an increasing expense to the firm. This means that as the firm increases job safety, it will have to give up more and more profits to maintain the same level of safety.

Refer to the Following Diagram