Which of the following is an ultimate objective of the Federal Reserve?

When MR = MC

A) marginal profit is maximized. B) total profit is maximized. C) marginal profit is positive. D) total profit is zero.

If average variable cost exceeds average fixed cost at a particular level of output: a. Profits must be positive

b. That fact is meaningless for deciding the quantity of output to produce. c. It is more likely that the output level is low relative to the designed capacity of the production facility than that the output level is low relative to the designed capacity of the production facility. d. Both b and c. are likely true.