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The Horizontal (Labor) Intercept of Manny Motors' Isocost Line Is

Question 56

Multiple Choice

The horizontal (labor) intercept of Manny Motors' isocost line is 3 million, and the vertical (robot) intercept is 5 million. Which of the following best describes what would happen to the isocost line if auto workers' wages decreased?


A) It would shift to the left.
B) It would rotate outward along the horizontal axis.
C) It would rotate inward along the horizontal axis.
D) It would rotate outward along the vertical axis.
E) It would rotate inward along the vertical axis.

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