1) Assume that a firm's marginal revenue curve intersects the rising portion of its marginal cost curve at 500 units of output. At this output level, a profit-maximizing firm's total cost of production is $1,000. If the price of the product is $5 per unit, the total revenue earned by the firm will be:

2) Scenario 9.2

Consider a publicly held firm (one whose stock shares are traded on the stock exchange) that earned revenue worth $350 million and incurred land, labor, and debt costs worth $320 million. The stockholders who have invested a total of $100 million in this firm could have earned 10 percent return on other comparable investments.

According to the information in Scenario 9.2, how much accounting profit did the firm make last year?

3) Which of the following istrueof marginal cost?

Group of answer choices

Marginal cost is equal to total cost divided by the quantity of output.

Marginal cost initially increases with an increase in output but subsequently declines.

Marginal cost curve is negatively sloped at the profit-maximizing level of output.

Marginal cost is the change in total cost divided by the change in total output.

Marginal cost is the cost per unit of output produced.