True or false questions (You should explain your answer briefly. A simple "true" or "false" without explanation will get zero point.)

a).Transportation cost is not an economic cost.

b). Bundling is a case of second degree of price discrimination.

c). A employee-specific investment may lead to moral hazard behavior in employee's side.

d). Consumers would like to pay a higher price for watermelon that is already opened because they can see the quality. This is a phenomenon relates to moral hazard.