1. If a person who weights 100lbs, is riding in an elevator and is joined by a person weighing 120 lbs, what happens to the average weight of person on the elevator?
2. It falls
3. It stays the same
4. It rises
5. Uncertain

1. 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
2. Do whatever is necessary to increase marginal profit
3. There is no enough information to make a decision
4. Increase output unit marginal profit falls to zero
5. Reduce output to maximize total profit