Marginal profit is negative when:
A) marginal revenue is negative.
B) total cost exceeds total revenue.
C) output exceeds the profit-maximizing level.
D) profit is negative.

Question

Quizplus · Accepted Answer

Marginal profit becomes negative when the cost of producing an additional unit exceeds the revenue generated from selling that unit, which typically occurs when production exceeds the profit-maximizing level.

Marginal Profit Is Negative When