Answer the following statement(s) true (T) or false (F)

1. The marginal cost of producing tea can be measured in dollars per pound of tea.
2. A firm's revenue can be calculated from its demand curve using the formula "price times quantity."
3. Fixed costs have no effect on a firm's profit.
4. Profits will be positive as long as marginal revenue is greater than marginal cost.
5. If marginal cost exceeds marginal revenue, then a reduction in output will create higher profits.

1. True
2, True
3. False
4. False
5. True