Given the Above Graph,if the Firm Continues to Produce 45

question 75

Multiple Choice

Given the above graph,if the firm continues to produce 45 units of output and moves from point A to point B,it must be true that

• A)the price of labor decreased relative to the price of capital.
• B)the price of capital decreased relative to the price of labor.
• C)the cost of producing 45 units decreased.
• D)both b and c
• E)none of these are true

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Definitions:

Mortgage Bonds

Bonds secured by a mortgage on one or more assets, providing bondholders a claim on those assets in case of default.

Good Faith

Acting with honest intention or belief without intending to deceive.

Credit

Refers to the provision of resources (such as money) by one party to another party with the understanding that the resources will be repaid, often with interest, at a future date.

Issuance Price

The price at which a company's securities are offered to the public for sale for the first time.