Topic: Managerial Economics, please make answers copy/pastable, instead of an image, and highlight the result--thanks!

5. Which of the following statements is (are) TRUE? I. A rm with market power maximizes prot by producing so that P = MC or MR = MC. If marginal revenue exceeds marginal cost, the rm should expand output to increase 11' prots. III. If a rm has no costs of production, it should continue producing until marginal revenue falls to zero. a. I b. II and III c. II (1. I, II, and III #16. Which of the following statements is (are) TRUE? 1. The Lerner index is zero for a perfectly competitive firm. 11. HP = $80 and MC = $60, the Lerner index = 0.25. III. If the price elasticity of demand is 1.25, the Lerner index is 0.80. A higher price elasticity of demand leads to a higher price markup over marginal IV. cost. a. I, n; and IV 13. I, II, III c. II and IV (1