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.
A) True
B) False

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.
A) True 
B) False

Quizplus · Accepted Answer

If the marginal profit function is negative at a certain level of production, it means that producing one more unit of the good will decrease the total 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