QUESTION 8 Select all that are true regarding marginal profit: O When marginal revenue exceeds marginal costs, the firm is making a contribution towards fixed expenses and profit. O Even though MR>MC, the firm may still operate at an overall loss O When MR = MC, the firm is at the break even point (profit = 0) Even though marginal revenue is positive, the firm may see declining total revenue. Marginal costs cannot be sunk costs When the benefit from making the next unit sale is greater than the cost of that sale, marginal profit is increasing. O When marginal costs exceed marginal revenue, output should be curtailed As long as the firm is above the breakeven point (Q) and MR>MC, it is profit maximizing O O O 0 O

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