If a competitive firm faces a competitive labor market, it will hire labor until

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.

A unit-elastic demand curve will be concave toward the origin

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