Suppose a Firm Moves from One Isoquant to an Isoquant

question 97

Multiple Choice

Suppose a firm moves from one isoquant to an isoquant further from the origin on an isoquant map.This movement indicates that

• A)factor prices for all inputs have increased.
• B)the price of capital has decreased.
• C)the firm has increased its plant size.
• D)the firm has hired more labour.
• E)the firm has increased its level of output.

---

Definitions:

Hedonic Relevance

Refers to behaviour that has important direct consequences for self.

High Consensus

A situation where there is widespread agreement among members of a group or community.

Highly Consistent

Describing something that consistently follows a particular pattern, behavior, or outcome without significant variation.

Situational Factor

An external influence that affects an individual's behavior or decision-making process in a given context.