Refer to Figure 7-2. The efficient equilibrium price is

If View Your World, a high-end window manufacturer, directly pays all of the transaction costs, the total cost to produce its windows includes all of the following except which one?

A) the cost of producing the windows B) the cost of transporting the inputs to make the windows to the plants C) the cost of transporting the product to its customers D) the cost to add another production plant

An increase in the marginal propensity to consume (MPC) will cause the consumption function to become steeper.

a. true b. false