Consider a Firm's Isocost Line Where Labor Is Measured on the Horizontal

question 9

Multiple Choice

Consider a firm's isocost line where labor is measured on the horizontal axis and capital on the vertical axis.If everything else is unchanged,a fall in the price of labor would:

• A)increase the horizontal intercept of the isocost line.
• B)shift the isocost line outward away from the origin.
• C)shift the isocost line inward toward the origin.
• D)increase the vertical intercept of the isocost line.

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Definitions:

U.s. Economy

The United States' economic structure is defined by a mixed-market system, incorporating both private sector businesses and government involvement.

Economic Growth

Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time, typically measured as the percent rate of increase in real gross domestic product (GDP).

Capital Goods

Tangible resources utilized by a business in creating goods and services for consumer consumption during the manufacturing process.

Technology Improvement

Enhancements or upgrades in technological capabilities that increase efficiency, productivity, or performance in processes or products.