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, it means that producing one more unit of a good will decrease the profit. Therefore, it does not make sense to increase production.

Determine Whether the Statement Below Is True or False