At the profit-maximizing level of output, marginal profit
A) is also maximized.
B) is zero.
C) is positive.
D) is increasing.
E) may be positive, negative or zero.

Question

Quizplus · Accepted Answer

At the profit-maximizing level of output, marginal profit is zero because this is the point where any additional unit produced would not add to overall profit, indicating that marginal cost equals marginal revenue.

At the Profit-Maximizing Level of Output, Marginal Profit