If marginal revenue exceeds marginal cost, profit maximizers ...

[penguins]

If marginal revenue exceeds marginal cost, profit maximizers should:
 a. reduce output until they are equal.
  b. increase output until they are equal.
  c. increase output until profits are zero.
  d. decrease output unless profits are zero.
  e. maintain current output.

Question 2

As shown in Exhibit 5-9, assuming goods X and Y are substitutes, an increase in the price of Y, other factors held constant, could move the equilibrium from point E to point:
 a. A.
  b. B.
  c. C.
  d. D.

[josephsuarez]

Answer to Question 1

b

Answer to Question 2

c