fixed costs are negligible
labour unions are highly influentialIncorrect
capacity utilization is high
the final product is not divisibleCorrect
Explanation
Some products are easy to divide into smaller units of output, for example oil, beer and milk. A firm could decide to produce 6.5 litres of milk. But it would not be sensible to produce 6.5 cars. Therefore, though MC = MR is strictly and mathematically correct, it is not always the most practical output level for a firm to maximize profits at.