The Horizontal (Labor) Intercept of Manny Motors' Isocost Line Is

question 37

Multiple Choice

The horizontal (labor) intercept of Manny Motors' isocost line is 3 million, and the vertical (robot) intercept is 5 million. Which of the following best describes what would happen to the isocost line if Manny Motors' operating budget decreased?

• A) It would shift rightward to a parallel position.
• B) It would shift rightward to a nonparallel position.
• C) It would shift leftward to a parallel position.
• D) It would shift leftward to a nonparallel position.
• E) Nothing.

---

Definitions:

Commercial Railroad

A railway system designed primarily for the transportation of goods and passengers for business purposes, significantly contributing to economic development.

Baltimore and Ohio Railroad

One of the oldest railroads in the United States, established in 1827, significant for its role in the development of American transportation.

Union Pacific

A major railroad company operating in the United States, known for its historical role in the transcontinental railroad's construction.

Western Migration

The movement of people to the western territories and states of the United States, particularly during the 19th century, in search of land, opportunity, and a better life.