Refer to the information provided in Figure 7.7 below to answer the question(s) that follow. Figure 7.7
-Refer to Figure 7.7 above. If Roller Skates Unlimited moves from isoquant A to isoquant B, the number of roller skates produced
A) decreases.
B) increases.
C) remains constant, but Roller Skates Unlimited uses more capital and more labor.
D) remains constant, but input prices have risen.

Question

Refer to the information provided in Figure 7.7 below to answer the question(s) that follow.  Figure 7.7
-Refer to Figure 7.7 above. If Roller Skates Unlimited moves from isoquant A to isoquant B, the number of roller skates produced
A) decreases. 
B) increases. 
C) remains constant, but Roller Skates Unlimited uses more capital and more labor. 
D) remains constant, but input prices have risen.

Quizplus · Accepted Answer

Moving from isoquant A to isoquant B represents an increase in the number of roller skates produced, as each isoquant represents a different level of output, and moving to a higher isoquant indicates a higher level of production.

Refer to the Information Provided in Figure 7