If the marginal revenue is greater than the marginal cost, a profit-maximizing price taker should reduce its output

1.false

If the marginal revenue is greater than the marginal cost ,a profit maximising price taker should increase its output.If the marginal revenue is greater than the marginal cost it implies that the if one more unit of produced it will bring more revenue than the cost so that the firms profit will increase.So when the marginal revenue is greater than the marginal cost price taker will always increase their output

2.True

Marginal cost is the change in the cost to produce an additional unit of output or in another terms marginal cost is change in the cost which arises when total output isincremented by one unit.

3.True

When the demand is relatively price inelastic,if there is an increase in the price the revenue will also increase.When the demand is price inelastic ,when there is an increase in price there is no much change in the quantity demanded it will increase the revenue

4.False.

On the graph the marginal revenue curve for a price searcheris seen below the downward slopping demand curve.price searcher(monopolist)to sell additional units of good must lower the price.Thus the marginal revenue is less than the price for a price searcher and hence the marginal revenue curve lies below the demand curve