Level of final commodity in household production model

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Reference no: EM13831869

Consider a diagram containing isocost curves for the production of a given level of a final commodity in the household production model. Assume that purchased inputs are represented on the vertical axis while the time input is measured on the horizontal axis. A decrease in the wage rate will cause the isocost curves to:

A. become steeper.

B. become flatter.

C. remain unchanged.

D. become steeper or flatter depending on the magnitude of the wage increase.

Reference no: EM13831869

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