Given the Above Graph,as You Move from Point a to Point

question 49

Multiple Choice

Given the above graph,as you move from point A to point B,

• A)output is unchanged.
• B)cost is unchanged.
• C)the rate at which the firm can substitute labor for capital while holding output constant decreases.
• D)both a and b
• E)both a and c

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Definitions:

Availability Heuristic

An intellectual shortcut that depends on the readily accessible examples in someone's memory upon contemplating a certain subject, notion, technique, or judgment.

Rare Events

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Insure Themselves

The act of individuals or entities protecting themselves against financial loss through the purchase of insurance.