FIGURE 8- 4 -Refer to Figure 8- 4. the Firm Is Initially Operating

Multiple Choice

FIGURE 8- 4
-Refer to Figure 8- 4. The firm is initially operating at point B. If prices of both factors fell by 25 percent and the firm wished to continue expending the same amount on each resource (while continuing to maintain efficiency) the firm would

A) stay at point B.
B) move toward point A.
C) shift towards the origin.
D) move towards point D.
E) move toward point C.