9. Statement 1: Price is equal to total revenue divided by output. Statement 2: A firm never maximizes profits. (LO3) a) Statement 1 is true, and statement 2 is false. b) Statement 2 is true, and statement 1 is false. c) Both statements are true. d) Both statements are false. 10. If a firm is producing a level of output at which that output's marginal cost is less than the price of the good, (LO3) a) it is producing too much to maximize its profits b) it is probably maximizing its profits c) higher profits could be obtained with increased production d) none of the above 11. The firm's long-run supply curve runs along its curve. (LO6) a) ATC C) MC b) AVC d) MR