If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing it, the firm
A) added more to total costs than it added to total revenue.
B) added more to total revenue than it added to total cost.
C) has minimized its losses.
D) is maximizing marginal profit.
Question 2
Which of the following is not a reason why government officials are willing to impose entry barriers?
A) to increase economic efficiency
B) to raise revenue
C) to promote an equitable distribution of income
D) to encourage innovation which may improve the standard of living in the long run