When grocery stores issue special discount membership cards for shoppers effectively offering different prices based on quantities consumed, this is an example of

Which of the following statements is not compatible with the opportunity cost theory?

A) Demand plays a role in the determination of costs. B) Labor costs depend upon the demand for labor. C) Relative prices reflect the relative amount of human labor required to produce goods. D) Supply as well as demand depends upon subjective preferences.

If, as a perfectly competitive industry expands, it can supply larger quantities at the same long-run market price, it is

A) a constant-cost industry. B) a fixed-cost industry. C) an increasing-cost industry. D) a decreasing-cost industry.