The Figure Below Shows the Isocost Lines and the Isoquant

question 24

Multiple Choice

The figure below shows the isocost lines and the isoquant map for a firm producing golf tees.
FIGURE 8- 6
-Refer to Figure 8- 6.Suppose there is a change in relative factor prices and the cost- minimizing method of producing 2000 golf tees is now at point D.If the total cost of producing 2000 golf tees is still $60,it must be the case that

• A)the price of labour and capital both rose.
• B)the price of labour and capital both fell.
• C)the price of labour fell and the price of capital rose.
• D)the price of labour rose and the price of capital fell.
• E)the price of labour fell and the price of capital remained constant.

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Definitions:

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Behaviors or activities that are harmful to oneself and that undermine one’s health, well-being, or quality of life.

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