Characterize each of following proclamations as true or false, and illustrate your answer.
1. If marginal revenue is less than the average revenue, the demand curve will be downward sloping.
2. Profits will be maximized when the total revenue equivalents total cost.
3. Given the downward sloping demand curve and positive marginal costs, profit maximizing firms will always sell less output upper prices than will revenue maximizing firms.
4. Marginal cost should be falling for the average cost to turn down as output expands.
5. Marginal profit is the differentiation between marginal revenue and marginal cost will always equivalent zero at the profit maximizing activity level.