1. When marginal revenue for a rm equals marginal cost, what can be said about the rm? a. It should increase the level of production to maximize its prot. b. It may be minimizing its losses, rather than maximizing its prot. I c. It must be generating economic prots. d. It must be generating economic losses. (5) 2. Refer to Figure 14-13. Assume that the market starts in equilibrium at point A in panel (b). What will result om an increase in demand from DemandO to Demandl? a. a new market equilibrium at point D b. an eventual increase in the number of rms in the market and a new long-run equilibrium at point C c. rising prices and falling prots for existing rms in the market d. falling prices and falling prots for existing rms in the market 0:02 030. M 3. Refer to Figure 14-10. When a prot-maximizing rm is earning prots, what can identify those prots? a. P x Q h. (MC AVC) x Q c. (PATC)>