17) Assume initially this firm is at point A. The following would be a reason for a movement to point B. K A B I1 I2 L A) Wages go down and per unit capital cost go up. B) Output decreases. C) Both wages and per unit capital costs go down. D) Wages go up and per unit capital costs go up. 18) Once we enter the region of diminishing returns, total variable cost A) increases at a decreasing rate. C) decreases at a decreasing rate. B) decreases at an increasing rate. D) increases at an increasing rate.
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