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13. If an isocosts intercept on the L axis moves outward while its intercept on the K axis moves inward, then we can infer t

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Answer #1

Isocost intercept on the L axis = (cost / Price of L)

Isocost intercept on the K axis = (Cost / Price of K)

Isocost intercept on the L axis moves outward when the price of L decrease, keeping the cost unchanged.

Isocost intercept on the K axis moves inward when the price of K increase, keeping the cost unchanged.

If an isocost's intercept on the L axis moves outward while its intercept on the K axis moves inward, then we can infer that the price of L decrease and price of K increase.

Answer: Option (C)

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