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

question 12

Multiple Choice

FIGURE 8- 4
-Refer to Figure 8- 4. The firm is initially minimizing the cost of producing 1000 units of output. Suppose the factor prices then change such that the price of capital (K) rises and the price of labour
(L) falls. If the firm decides to keep its output unchanged, it will move toward the point

• A) A.
• B) B.
• C) C.
• D) D.
• E) unknown as there is insufficient information to know

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