1) Last week we looked at Consumer Choice Theory, and this week, we are looking at Theory of the Firm. The major difference between these two players in an economy is that the household (consumer) looks to maximize utility, while the firm looks to maximize profits. Make an example that illustrates the difference between maximizing utility and maximizing profits

• How might a consumer act in a way that goes against their bottom line?
 
• How might a firm justify donating to charity or anything else like that?

2) In our "standard" Marginal Cost graph, we see that marginal cost tends to increase as quantity increases. Why might this be an accurate portrayal of reality? Use of a real world thought process will likely be helpful in thinking about this problem.