Refer to the information provided in Figure 7.8 below to answer the questions that follow. Figure 7.8
-Refer to Figure 7.8 above. If Roller Skates Unlimited moves from isoquant B to isoquant A, 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 7.8 below to answer the questions that follow.  Figure 7.8
-Refer to Figure 7.8 above. If Roller Skates Unlimited moves from isoquant B to isoquant A, 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

Roller Skates Unlimited moves from isoquant B to isoquant A, which means it is producing more roller skates with the same amount of inputs.

Refer to the Information Provided in Figure 7