Determine whether the statement below is true or false.
If the marginal profit function is negative at , then it makes sense to increase the level of production.

Question

Determine whether the statement below is true or false.
If the marginal profit function is negative at  , then it makes sense to increase the level of production.

Quizplus · Accepted Answer

If the marginal profit function is negative at a specific level of production, it means that producing one more unit will decrease the profit. Therefore, it does not make sense to increase the level of production at that point.

Determine Whether the Statement Below Is True or False