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:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, typically used by businesses to manage liquidity and ensure they can meet their cash requirements.

Short-term Financial Management

The practice of managing a company's financial activities that are expected to be resolved within a year.

Carrying Costs

The expenses incurred by holding inventory, including storage, insurance, and taxes, over a certain period.

Cash Cycle

A business concept that describes the process of converting resources into cash flows, from purchasing inventory to collecting revenue from customers.