Exhibit 7-21 -For the Three Isocost Lines Shown in Exhibit 7-21 Which

Multiple Choice

Exhibit 7-21
-For the three isocost lines shown in Exhibit 7-21 which of the following is true:

A) the expenditure on inputs does not change as the isocost lines get farther from the origin
B) the amount of output produced gets smaller the farther the isocost lines get from the origin
C) the amount of output produced gets larger the farther the isocost lines get from the origin
D) the expenditure on inputs required by the firm gets smaller the farther the isocost lines get from the origin
E) the expenditure on inputs required by the firm gets larger the farther the isocost lines get from the origin