If a firm has not maximized its profit, it could be the case that
A) marginal cost is less than average total cost
B) marginal cost is greater than average total cost
C) marginal cost, average total cost, and marginal revenue all intersect at the same quantity
D) marginal cost is higher than average variable cost
E) the market price is higher than marginal cost

Question

Quizplus · Accepted Answer

If the market price is higher than marginal cost, the firm can increase profit by producing more, indicating it has not maximized its profit.

If a Firm Has Not Maximized Its Profit, It Could