Question 1
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow.
![](data:image/png;base64, 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)
![](data:image/png;base64, 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)
Refer to Figure 7.8. The firm is currently along isocost
CE. If the price of capital is $24, then the price of labor is
◦ $16.
◦ $24.
◦ $80.
◦ $120.
Question 2
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow.
![](data:image/png;base64, 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)
![](data:image/png;base64, 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)
Refer to Figure 7.8. The firm's isocost line would shift from
CE to
CD if
◦ the price of capital increased.
◦ the price of labor increased.
◦ the firm's total expenditure on inputs increased.
◦ either the price of labor increased or the firm's total expenditure on inputs increased.