Average revenue

1. Average revenue is always equal to marginal revenue. TRUE or FALSE? Explain [2 points] 2. The table below provides the annual revenues and costs for a family-owned firm producing catered meals. [5 points] Total Revenues ($) 500 000 Total Costs ($) - wages and salaries 200 000 - rent 105 000 - depreciation of capital equipment 25 000 - inputs 150 000 forgone wages of owners in alternative employment 80 000 - interest on bank loan 10 000 Find the firm's accounting and economic profits