If marginal revenue exceeds marginal cost, to increase its profit ...

[viki]

If marginal revenue exceeds marginal cost, to increase its profit the firm will
 
  A) decrease its output.
  B) increase its output.
  C) keep its output the same.
  D) shut down.

Question 2

Danny has 12 to spend on two goods: pies and soda. The price of a pie is 4, and the price of a can of soda is 2. To maximize his utility, Danny buys ________.
 
  A) the combination that gives him equal total utility from pies and soda
  B) 2 pies and 2 cans of soda
  C) only sodas because they are less expensive
  D) the combination that gives him the same marginal utility per dollar spent on pies as on soda

[pami445]

Answer to Question 1

B

Answer to Question 2

D

[viki]

YES! Correct, THANKS for helping me on my review

[okolip]

Thanks for the timely response, appreciate it