If the Cost of Labor Increases,the Isocost Line Will

question 51

Multiple Choice

If the cost of labor increases,the isocost line will

• A) stay the same.
• B) shift outward in parallel fashion.
• C) rotate inward around the point where only capital is employed in production.
• D) shift inward in parallel fashion.

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Definitions:

Calculate

The process of determining something mathematically or computationally, often involving operations such as addition, subtraction, multiplication, and division.

Y-intercept

The location on a graph where a line intersects with the y-axis, showing the dependent variable's value at the point the independent variable equals zero.

Data

Facts and statistics collected together for reference or analysis.

Linear Regression Equation

An equation used to predict the value of a dependent variable based on one or more independent variables, typically in the form y = mx + b.