Which of the following is FALSE?
A) A change in input prices shifts the isoquant map.
B) Convex isoquants mean that the marginal rate of technical substitution decreases as the firm substitutes labor for capital.
C) A change in total cost shifts the isocost curve.
D) At the optimal input choice,the rate at which the firm can substitute labor for capital in production is equal to the rate at which the firm can substitute labor for capital in the market.
E) none of the above.
Correct Answer:
Verified
Q1: producer is hiring 20 units of labor
Q3: Refer to the following figure.The price of
Q4: Refer to the following figure.The price of
Q5: Suppose that when a firm increases output
Q6: Refer to the following graph.The price of
Q7: Refer to the following figure.The price of
Q8: Refer to the following figure.The price of
Q9: The marginal rate of technical substitution is
A)the
Q10: Refer to the following graph.The price of
Q11: Refer to the following figure.The price of
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