continuation of optional answers to question number 40 are: b) produces at the output at which MR is maximized. c) hires labor until the MRP of labor

36. The private firm's optimal decisions are made on the basis of a. rate of growth in total profit. b. average cost and average revenue figures. c. impact on market share. d. marginal cost and marginal revenue figures. 37 If at an output of 4,000 units, Sloan Company is making an economic profit and marginal profit is $20 per unit, the firm should a. reduce output to maximize total profit. b. increase output until marginal profit falls to zero. c. do whatever is necessary to increase marginal profit. d. There is not enough information to make a decision. 38 Whenever average cost exceeds marginal cost, a. average cost is rising. b. average cost is falling. c. marginal cost is rising. d. marginal cost is falling. 39 In arriving at the quantity of output and price of its product, a company a. chooses either output or price, and customer demand determines the other. b. has no control over either quantity or price. c. makes two decisions by setting both optimal output and optimal price. d. generally leaves both quantity and price decisions to customer. 40 A profit-maximizing firm always a. sells its output at P = MC