1) A firm maximizes profit by operating at the level of output where

A. Average revenue equals average cost

B. Average revenue equals average variable cost

C. Total costs are minimized

D. Marginal revenue equals marginal cost

E. Marginal revenue exceeds marginal cost by the greatest amount

2) When Total Revenue and Total Cost curves have the same slope,

A. They are furthest from each other

B. They are closest to each other

C. They intersect each other

D. Profit is negative

E. Profit is zero

3) Because of the relationship between a perfectly competitive firm's demand curve and its marginal revenue curve, the profit maximization condition for the firm can be written as

A. P=MR

B. P=AVC

C. AR=MR

D. P=MC

E. P=AC

4) As we move downward along a demand curve for apples

A. Consumer well being decreases

B. The marginal utility of apples decreases

C. The marginal utility of apples increases

D. Both a and b are true

E. Both a and c are true