1. A firm is maximizing its profit while incurring economic losses. What must be true?

A.Total cost > total revenue; marginal cost > marginal revenue

B.Total cost = total revenue; marginal cost > marginal revenue

C.Average total cost > price; marginal cost = marginal revenue

D.Average total cost < price; marginal cost = marginal revenue

E.Average total cost < average revenue; marginal cost > marginal revenue

2 Which of the following describes the slope of the long-run average total cost curve when operating with diseconomies of scale?

A. It is flat.

B. It is positive.

C.It is negative.

D.It is negative and then positive.

E.It is positive and then negative.