FIGURE 8- 4 -Refer to Figure 8- 4. the Firm Is Initially Producing

question 98

Multiple Choice

FIGURE 8- 4
-Refer to Figure 8- 4. The firm is initially producing 2000 units and minimizing its production cost at point D. Suppose the prices of capital and labour each rise by 10 percent. If the firm wishes to continue producing the same level of output it will

• A) move toward point B.
• B) move to the right of point D.
• C) remain at point D.
• D) move toward point A.
• E) move toward point C.