"The price elasticity of demand is constant along a straight-line demand curve." Is this statement true or false?
Indicate whether the statement is true or false
False. The price elasticity of demand decreases when moving downward along a straight-line demand curve.
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Academic book publishers hire editors, designers, and production and marketing managers who help prepare books for publication
Because these employees work on several books simultaneously, the number of people the company hires will not go up and down with the quantity of books the company publishes during any particular year. The salaries and benefits of people in these job categories will be included in A) fixed cost but not variable cost and total cost. B) fixed cost and marginal cost but not variable cost. C) fixed cost and total cost but not variable cost. D) marginal cost and total cost but not fixed cost.
One problem with a cost plus incentive fee procurement contract is _____
a. it requires clearly defined output that is not really malleable b. it almost always leads to higher costs c. firms have a strong incentive to invest in the most expensive technology to complete the project d. firms have an incentive to misrepresent final costs