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    Managerial Economics Study Set 1
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    Exam 9: Production and Cost in the Long Run
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    Refer to the Following
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Refer to the Following

Question 55

Question 55

Multiple Choice

Refer to the following:
Refer to the following:    -If the firm continues to produce 45 units of output and moves from the combination at A to the combination at B, it must be true that A)  the price of labor decreased relative to the price of capital. B)  the price of capital decreased relative to the price of labor. C)  the cost of producing 45 units decreased. D)  both b and c E)  none of these are true
-If the firm continues to produce 45 units of output and moves from the combination at A to the combination at B, it must be true that


A) the price of labor decreased relative to the price of capital.
B) the price of capital decreased relative to the price of labor.
C) the cost of producing 45 units decreased.
D) both b and c
E) none of these are true

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