Assume That the Relative Prices of Capital and Labor Have

question 144

Multiple Choice

Assume that the relative prices of capital and labor have not changed. As a firm's expenditures for capital and labor increase, its isocost line

• A) shifts out parallel to the original isocost line.
• B) shifts in parallel to the original isocost line.
• C) rotates outward on the Y-intercept.
• D) rotates outward on the X-intercept.

---

Definitions:

Environmentally-Friendly

Refers to products, policies, and practices that have minimal impact on the environment, aiming to conserve resources, reduce pollution, and protect natural habitats.

Polluters

Entities that release pollutants or contaminants into the environment, causing harm to ecosystems and human health.

Carbon Footprint

The total amount of greenhouse gases emitted by an individual, organization, event, or product, usually expressed in equivalent tons of carbon dioxide (CO2).

Hybrid Automobiles

Vehicles powered by a combination of an internal combustion engine and one or more electric motors, using energy stored in batteries.