As the manager of a firm you calculate the marginal revenue is ...

[aabwk4]

As the manager of a firm you calculate the marginal revenue is 152 and marginal cost is 200. You should
 
  A) expand output.
  B) do nothing without information about your fixed costs.
  C) reduce output until marginal revenue equals marginal cost.
  D) expand output until marginal revenue equals zero.
  E) reduce output beyond the level where marginal revenue equals zero.

Question 2

Refer to Figure 8.1. At 67 units of output, profit is
 
  A) maximized and zero.
  B) maximized and negative.
  C) maximized and positive.
  D) not maximized, and zero.
  E) not maximized, and negative.

[HandsomeMarc]

Answer to Question 1

C

Answer to Question 2

C