Refer to Scenario 3. The average variable cost of producing three units of output is:

If marginal revenue equals marginal cost, the firm is maximizing profits as long as

A) the resulting profits are positive. B) marginal cost exceeds marginal revenue for greater levels of output. C) the average cost curve lies above the demand curve. D) All of the above are required.

Refer to the information provided in Figure 5.4 below to answer the question(s) that follow. Figure 5.4Refer to Figure 5.4. Along the given demand curve, which of the following is true?

A. Demand is more elastic along the segment CF than the segment AC. B. Demand is more elastic along the segment AC than the segment CF. C. Since the demand curve is linear, the price elasticity of demand between each of the points is the same. D. All of the above are true.