Given the above graph,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

Given the above graph,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

Moving from point A to point B, the output remains constant. However, the cost increases, indicating that the rate at which the firm can substitute labor for capital while holding output constant decreases. Therefore, both options A and C are correct, making E the best choice.

Given the Above Graph,as You Move from Point a to Point