Suppose the price of capital and labor remain constant. As a firm's expenditures for capital and labor increase, its isocost line
A) rotates outward on the Y-intercept. B) shifts in parallel to the original isocost line.
C) rotates outward on the X-intercept. D) shifts out parallel to the original isocost line.
D
Economics
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Suppose the price of a Snickers candy bar is $2.00 at both the airport and the grocery store. The price elasticity of demand for a Snickers candy bar at an airport is likely to be ________ the price elasticity of demand for a Snickers candy bar at the grocery store.
A. greater than B. equal to C. the reciprocal of D. less than
Economics
Suppose that the value of the short-run absolute elasticity of demand for a good is 0.9. Then, we know the long-run absolute price elasticity of demand will be
A. less than 0.9. B. inelastic. C. greater than 0.9. D. 0.
Economics