Solved

Consider a Firm's Isocost Line Where Labor Is Measured on the Horizontal

Question 9

Multiple Choice

Consider a firm's isocost line where labor is measured on the horizontal axis and capital on the vertical axis.If everything else is unchanged,a fall in the price of labor would:


A) increase the horizontal intercept of the isocost line.
B) shift the isocost line outward away from the origin.
C) shift the isocost line inward toward the origin.
D) increase the vertical intercept of the isocost line.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions