Refer to Figure 7.8 The firm's isocost line could shift from CD to AB if

A) the price of capital increased.
B) the firm's total expenditures increased by 25%.
C) the price of capital and labor each increased by 25%.
D) the firm's total expenditures decreased by 25% or the price of capital and labor each increased by 33%.

Isocost Line

A graphical representation showing combinations of inputs that can be purchased with a specific amount of money, facilitating cost-minimization analysis.

Price of Capital

The cost of using capital goods in production, often expressed as an interest rate or rental rate.

Total Expenditures

The total amount of money spent by individuals, firms, or the government on goods and services.