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

Multiple Choice

FIGURE 8- 4
-Refer to Figure 8- 4. The firm is initially minimizing the cost of producing 1000 units of output. Suppose the factor prices then change such that the price of capital (K) falls and the price of labour
(L) rises. If the firm decides to leave its output unchanged, it will now move toward the point

A) A.
B) B.
C) C.
D) D.
E) unknown as there is insufficient information to know