Problems-
1. For a competitive industry in the long run, if MR = MC = SRATCmin = LRATCmin, then all of the following are true except:
A) the industry has achieved allocative efficiency.
B) consumer surplus is maximized.
C) firms are earning an economic profit.
D) the industry has achieved productive efficiency.
2. Sally sells soybeans in a competitive market. If her MC = $3, her MR = $4, her ATC = $5, and her AVC = $2, then she should:
A) decrease production.
B) shut down.
C) increase her price.
D) increase production.
Additional Information-
These multiple choice problems belong to Economics and the both problems are about marginal revenue being equal to marginal cost.