The second-order condition for maximizing net benefits is A)d²N/dQ²

Question

The second-order condition for maximizing net benefits is A)d²N/dQ² < 0. B)d(MB)/dQ < d(MC)/dQ. C)d²B/dQ² < d²C/dQ². D)all of the statements associated with this question are correct.

Quizplus · Accepted Answer

The second-order condition for maximizing net benefits is d²N/dQ² < 0, which means that the net benefit curve is concave downward. This implies that the marginal benefit curve (MB) is decreasing and the marginal cost curve (MC) is increasing. Therefore, the correct answer is D.

The Second-Order Condition for Maximizing Net Benefits Is