Total profit is maximized if the slope of the total profit curve is
A)positive.
B)negative.
C)increasing.
D)zero.

Question

Quizplus · Accepted Answer

The total profit is maximized at the point where the slope of the total profit curve is zero, which means that the marginal profit (the additional profit earned from producing one more unit) is equal to zero. At this point, the firm is producing the optimal level of output where the cost of producing an additional unit equals the revenue earned from that unit, and any deviation from this level would result in lower total profit.

Total Profit Is Maximized If the Slope of the Total