The efficient markets hypothesis implies that stock investments should have the same expected return after adjusting for

Answer the following statements true (T) or false (F)

1) All else equal, firms with a few large plants are more likely to have lower average costs than firms with many small plants. 2) A plant is located at the cost-minimizing location when the marginal benefit of moving closer to the inputs is exactly double the marginal cost of moving closer. 3) If a firm is not directly paying all of the transportation costs, managers still have an incentive to minimize the sum of the production and transportation costs. 4) If a firm has two plants, one in a desirable location and one in an undesirable location, workers located in the desirable location are likely to be paid more. 5) If a firm has two plants and workers at Plant 1 are paid $40,000 a year and workers at Plant 2 are paid $45,000, the $5,000 difference in salary is a compensating wage differential.

Refer to the graph shown. An effective price ceiling at Pc causes consumer surplus to:

A. fall from areas C + D + F to area D. B. fall from areas A + B + E to area A. C. change from areas A + B + E to areas A + B + C. D. change from areas C + D + F to areas B + C + D.