Use the Following Figure to Answer the Question : Figure

question 40

Multiple Choice

Use the following figure to answer the question : Figure 16-1 :shows the isoquants,IQ₁ and IQ₂,for a competitive firm.

-Refer to Figure 16-1.The firm was initially at point A.It will move to point B if:

• A)the price of the final product increases.
• B)the wage rate increases.
• C)the cost of capital rises.
• D)the demand for the final product falls.