1)If, at the current level of ourput, a firm's price exceeds its marginal revenue, and its marginal revenue exceeds its marginal cost, then to maximize profits, it should:
a) reduce price and raise output.
b) raise the price and raise the output.
c) keep prices the same and reduce output.
d) reduce price and reduce output.
2) Transaction costs are included as a component of:
a) None of these
b) marginal costs
c) fixed costs
d) variable costs