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Refer to Figure 8-4. The firm is initially producing 2000 units and minimizing its production cost at point D. Suppose the prices of capital and
Refer to Figure 8-4. The firm is initially producing 2000 units and minimizing its production cost at point D. Suppose the prices of capital and labour each rise by 10%. If the firm wishes to continue producing the same level of output it will:
move toward point C.move toward point B.move to the right of point D.remain at point D.move toward point A.
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