A firm should keep producing output as long as the marginal profit is greater than zero, no matter how small it is.

Question

Quizplus · Accepted Answer

As long as the marginal profit is positive, the firm is generating more revenue than it is incurring in additional costs, and it is therefore profitable to keep producing output. Even if the marginal profit is very small, the firm is still generating a profit and should continue to produce output.

A Firm Should Keep Producing Output as Long as the Marginal