Marginal profit is defined as the change in total profit resulting from producing one additional unit of output. It is essentially the rate of change of total profit with respect to changes in the level of output, which aligns with choice A.

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Marginal Profit Is

Question 34

Multiple Choice

Marginal profit is:

A) the rate of change of total profit with respect to changes in the level of output.
B) the average profit per unit sold.
C) is equal to total profit divided by quantity of output.
D) will be maximized where marginal revenue is greater than marginal cost.
E) the price of a product less the firm's average variable costs.

Correct Answer: