Costs to the firm arising from reaching agreements on input prices with suppliers and then ensuring that terms of agreements are fulfilled, are called

Refer to the table above. For which of the following choices is the marginal total cost the lowest?

A) Choosing factory Close over factory Far B) Choosing factory Far over factory Very Far C) Choosing factory Very Close over factory Close D) Choosing factory Close over factory Very Far

The monetary transmission mechanism that links monetary policy to GDP through real interest rates and investment spending is called the

A) traditional interest-rate channel. B) Tobins' q theory. C) wealth effects. D) cash flow channel.