FIGURE 8- 4
-Refer to Figure 8- 4.The firm is initially operating at point B.If prices of both factors fell by 25% and the firm wished to continue expending the same amount on each resource (while continuing to maintain efficiency)the firm would
A)move toward point C.
B)move towards point D.
C)shift towards the origin.
D)move toward point A.
E)stay at point B.

Question

FIGURE 8- 4 
-Refer to Figure 8- 4.The firm is initially operating at point B.If prices of both factors fell by 25% and the firm wished to continue expending the same amount on each resource (while continuing to maintain efficiency)the firm would
A)move toward point C. 
B)move towards point D. 
C)shift towards the origin. 
D)move toward point A. 
E)stay at point B.

Quizplus · Accepted Answer

The Answer of FIGURE 8- 4 
-Refer to Figure 8- 4.The firm is initially operating at point B.If prices of both factors fell by 25% and the firm wished to continue expending the same amount on each resource (while continuing to maintain efficiency)the firm would
A)move toward point C. 
B)move towards point D. 
C)shift towards the origin. 
D)move toward point A. 
E)stay at point B.