Which of the following is true along the demand curve for labor?
a. The marginal cost of labor is constant.
b. The wage rate is constant.
c. The total cost of production is constant.
d. The quantity of labor demanded is constant.
e. The prices of all other inputs are constant.
E
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In the presence of asymmetric information, production efficiency is assured when the principal and agent share the profit
Indicate whether the statement is true or false
Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mortgage payment; $250 cost of electricity to run the printing presses; $800 for ink and paper; and $200 in city property taxes (based on the value of the building and land). Its total variable costs are:
a. $8,950. b. $8,750. c. $6,550. d. $6,300. e. $5,500.