he shift from AS1 to AS2 in Exhibit 2 could be caused by a(an):   Group of answer choices sudden increase in the price of oil. increase in input prices for most firms. increase in workers' wages. all of the answers are incorrect

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Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.