True or False? 1. When total profit is maximized, marginal profit is equal to zero. Similarly, when total revenue is maximized, marginal revenue is equal to zero. 2. In general, consumer surplus increases as the price of a good decreases. 3. At the output level where total revenue is maximized, price elasticity of demand is equal to zero. 4. At quantities corresponding to the elastic portion of the inverse demand curve, the total revenue curve slopes up.

True or False? 1. When total profit is maximized, marginal profit is equal to zero. Similarly, when total revenue is maximized, marginal revenue is equal to zero. 2. In general, consumer surplus increases as the price of a good decreases. 3. At the output level where total revenue is maximized, price elasticity of demand is equal to zero. 4. At quantities corresponding to the elastic portion of the inverse demand curve, the total revenue curve slopes up.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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