Which of the Following Is FALSE

question 10

Multiple Choice

Which of the following is FALSE?

• A)A change in input prices shifts the isoquant map.
• B)Convex isoquants mean that the marginal rate of technical substitution decreases as the firm substitutes labor for capital.
• C)A change in cost shifts the isocost curve.
• D)At the optimal input choice,the rate at which the firm can substitute labor for capital in production is equal to the rate at which the firm can substitute labor for capital in the market.
• E)none of the above.

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Definitions:

Leadership Capacity

The potential or ability for individuals to lead effectively, often developed through experience, training, and personal growth.

Variable Cost

Expenses that change in proportion with the level of production or sales volume, such as raw materials and direct labor costs.

Total Cost

The sum of all expenses incurred in producing a good or service, including both fixed and variable costs.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.