If an isocost line crosses the isoquant twice, a cost minimizing firm will A. use an isocost line further from the origin to select the bundle of inputs. B. use the input bundle associated with the intersection on the higher point of the isoquant. C. use the input bundle associated with the intersection on the lower point of the isoquant. D. use an isocost line closer to the origin to select the bundle of inputs.

Consider the labor market for heath care workers. because of the aging population in the united states, the output price for health care services has increased. holding all else equal, what effect does this have on the labor market for health care employees? a. the equilibrium wage increases and the equilibrium quantity of labor increases. b. the equilibrium wage increases and the equilibrium quantity of labor decreases. c. the equilibrium wage decreases and the equilibrium quantity of labor increases. d. the equilibrium wage decreases and the equilibrium quantity of labor decreases.