At its profit-maximizing output, the firm in the above figure incurs a total cost of production of

Which of the following is not among the functions of contract?

a. to provide incentives for efficient reliance b. to reduce transaction costs c. to discourage the development of asymmetric information d. to provide risk allocation mechanisms

If autonomous consumption is greater than zero and the marginal propensity to consume is greater than zero, but less than one, the consumption function will first be below and then above the 45 degree line

a. True b. False Indicate whether the statement is true or false