1. When marginal revenue is greater than price the firm's profit is always positive.

True

False

2. When an increase in the quantity results in a reduction in profit marginal cost is greater than marginal revenue.

True

False

3. When wage is greater than marginal revenue hiring an additional unit of labor will result in a reduction in profit or an increase in loss.

True

False

4. A profit-maximizing firm should keep on hiring labor as long as the marginal revenue product of labor is greater than wage.

True

False

5. Generally, to maximize profit is to minimize cost.

True

False