Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8 The firm's isocost line could shift from AB to CD if
A. the price of capital increased.
B. the price of capital and labor each decreased by 33%.
C. the firm's total expenditures decreased by 25%.
D. the firm's total expenditures increased by 33% or the price of capital and labor each decreased by 25%.
Answer: D
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Refer to Figure 24-1. Ceteris paribus, an increase in the value of the domestic currency relative to foreign currencies would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
From an economic standpoint, the amount of pollution should be
A) zero. B) the amount that allows firms to maximize profits. C) the amount where firms are earning a normal rate of return on investment. D) at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.