Multiple Choice
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8
-Refer to Figure 7.8 The firm's isocost line could shift from CD to AB if
A) the price of capital increased.
B) the firm's total expenditures increased by 25%.
C) the price of capital and labor each increased by 25%.
D) the firm's total expenditures decreased by 25% or the price of capital and labor each increased by 33%.
Correct Answer:
Verified
Correct Answer:
Verified
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