Question 1
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow.
Refer to Figure 7.8 The firm's isocost line could shift from
CD to
AB if
◦ the price of capital increased.
◦ the firm's total expenditures increased by 25%.
◦ the price of capital and labor each increased by 25%.
◦ the firm's total expenditures decreased by 25% or the price of capital and labor each increased by 33%.
Question 2
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow.
Refer to Figure 7.8 The firm's isocost line could shift from
AB to
CD if
◦ the price of capital increased.
◦ the firm's total expenditures decreased by 25%.
◦ the price of capital and labor each decreased by 33%.
◦ the firm's total expenditures increased by 33% or the price of capital and labor each decreased by 25%.
Move joints in hands. Apply scissoring to metacarpals and figure-8s to fingers.
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