If isoquants are plotted on a graph with capital measured on the vertical axis and labor on the horizontal axis, then an increase in the wage rate will cause the isocost line a. to become flatter and the optimal quantity of labor will decrease b. to become steeper and the optimal quantity of labor will decrease C. to become flatter and the optimal quantity of labor will increase d. to become steeper and the optimal quantity of labor will increase

If isoquants are plotted on a graph with capital measured on the vertical axis and labor on the horizontal axis, then an increase in the wage rate will cause the isocost line a. to become flatter and the optimal quantity of labor will decrease b. to become steeper and the optimal quantity of labor will decrease C. to become flatter and the optimal quantity of labor will increase d. to become steeper and the optimal quantity of labor will increase

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section7.A: Appendix: A Closer Look At Production And Cost

Problem 1AQ

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