Multiple Choice

-Refer to the figure above. A firm's isocost line would shift from A to C if
A) the firm's budget increased and the factor costs remained the same.
B) the budget increased and also the cost of labour increased.
C) the firm's budget stayed the same, but the cost of the two factors increased by the same percentage.
D) the firm's budget stayed the same, but cost of the two factors decreased by the same percentage.
Correct Answer:
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