Refer to the above information. The marginal benefits of crime control for Level Two are:

A perfectly competitive firm that is producing a positive quantity of a good maximizes its economic profit if it produces so that

A) total revenue = total cost. B) marginal revenue = marginal cost. C) average revenue = average total cost. D) average total cost = average variable cost.

Which of the following is not an advantage cost-plus pricing?

A) It leads to profit maximization. B) It could lead to price stability if the industry is made up of identical firms all using the same method of pricing. C) It is an easy method to implement if a firm produces multiple products and has overhead costs that are difficult to allocate to a particular good. D) It is easy to justify price increases when total costs of production increase.