Refer to the information provided in Figure 7.9 below to answer the questions that follow. Figure 7.9
-Refer to Figure 7.9 The firm's isocost line could shift from CD to AB if
A) the price of capital increased.
B) the firm's total expenditures increased by 25%.
C) the price of capital and labor each increased by 25%.
D) the firm's total expenditures decreased by 25% or the price of capital and labor each increased by 33%.

Question

Refer to the information provided in Figure 7.9 below to answer the questions that follow.  Figure 7.9
-Refer to Figure 7.9 The firm's isocost line could shift from CD to AB if
A) the price of capital increased. 
B) the firm's total expenditures increased by 25%. 
C) the price of capital and labor each increased by 25%. 
D) the firm's total expenditures decreased by 25% or the price of capital and labor each increased by 33%.

Quizplus · Accepted Answer

The Answer of Refer to the information provided in Figure 7.9 below to answer the questions that follow.  Figure 7.9
-Refer to Figure 7.9 The firm's isocost line could shift from CD to AB if
A) the price of capital increased. 
B) the firm's total expenditures increased by 25%. 
C) the price of capital and labor each increased by 25%. 
D) the firm's total expenditures decreased by 25% or the price of capital and labor each increased by 33%.

Refer to the Information Provided in Figure 7