The figure below shows the isocost lines and the isoquant map for a firm producing golf tees.
FIGURE 8- 6
-Refer to Figure 8- 6.Suppose there is a change in relative factor prices and the cost- minimizing method of producing 2000 golf tees is now at point D.If the total cost of producing 2000 golf tees is still $60,it must be the case that
A) the price of labour and capital both rose.
B) the price of labour and capital both fell.
C) the price of labour fell and the price of capital rose.
D) the price of labour rose and the price of capital fell.
E) the price of labour fell and the price of capital remained constant.
Correct Answer:
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Q75: Q89: FIGURE 8- 4 Q90: The figure below shows a family of Q92: Assume a firm is using 10 units Q93: A firm's least- cost position for producing Q95: The following table shows the marginal Q96: Consider a firm that uses only labour Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
