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

Multiple Choice

FIGURE 8- 4
-Refer to Figure 8- 4. The firm is initially producing 1000 units and minimizing its production cost at point B. Suppose the prices of capital and labour each fall by 20 percent. If the firm wishes to continue producing the same level of output it will

A) move toward point D.
B) move toward point A.
C) move toward point C.
D) remain at point B.
E) move to the left of point B.