Consider a Firm That Uses Labor and Capital as the Only

question 88

Multiple Choice

Consider a firm that uses labor and capital as the only inputs.Suppose labor is on the horizontal axis and capital is on the vertical axis.Further,the expansion path has shifted down and average cost curves have shifted up.Which of following provides the most likely explanation for what has happened?

• A)The wage rate decreased
• B)The wage rate increased
• C)The price of capital decreased
• D)The price of capital increased

---

Definitions:

Enterprise Microblogging

A form of microblogging used within companies or organizations to enhance communication, sharing, and collaboration among employees.

Media Rich

Refers to digital content that incorporates a variety of multimedia elements including text, audio, video, and interactive features.

Communication Tools

Communication tools are devices or applications used to exchange information, including emails, messaging apps, video conferencing software, and social media platforms.

Sustainability

Sustainability refers to the ability to maintain or improve certain processes or states indefinitely, often focusing on balancing ecological, social, and economic demands to ensure future viability.