The Expansion Path Shows

question 95

Multiple Choice

The expansion path shows

• A) how input prices change as the firm's output level changes.
• B) how the marginal products change as the firm's output level changes.
• C) how the cost-minimizing input choices change as the firm's output level changes.
• D) how the profit-maximizing input choices change as the firm's output level changes.
• E) how the cost-minimizing input prices change as the firm's output level changes.

---

Definitions:

Correlation Coefficient

The correlation coefficient is a numerical measure of some type of correlation and dependence, meaning statistical relationships between two or more variables.

Independent Variable

A variable in an experiment that is manipulated to observe its effect on a dependent variable.

Continuous

Refers to data or a variable that can take on any value within a given range and is not restricted to specific separated values.

Scatterplot

A graphical representation of the relationship between two variables, showing how one variable is affected by the other.