Question 1
Profit-maximising firms want to maximise the difference between
◦ marginal revenue and marginal cost.
◦ total revenue and marginal cost.
◦ total revenue and total cost.
◦ marginal revenue and average cost.
Question 2
If raw material costs rise the average revenue curve will
◦ remain in the same place.
◦ shift to the left.
◦ shift to the right.
◦ none of the above.