The Figure Below Shows the Isocost Lines Facing a Firm

question 114

Multiple Choice

The figure below shows the isocost lines facing a firm producing golf tees. FIGURE 8-5
-Refer to Figure 8-5.If the cost-minimizing firm is initially producing at a point on isocost line 1 and then moves to a point on isocost line 3,we can say that

• A)the per unit prices of capital and labour have each doubled.
• B)the output of golf tees has doubled.
• C)the per unit prices of capital and labour have fallen by 50%.
• D)the firm's level of output has increased.
• E)the firm is producing more efficiently.

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Definitions:

Sound Waves

Vibrations that travel through the air or another medium and can be heard when they reach a person's or animal's ear.

Ultrasound

High-frequency sound waves that are reflected off a fetus or an internal organ to provide information to generate a computer image.

Fetus

A developing mammal or human from the end of the embryo stage (usually from nine weeks after fertilization in humans) until birth.

Sperm Cell

The male reproductive cell capable of fertilizing an ovum to produce offspring.