If output is increased beyond the point where total profit is maximized,
A)marginal profit will be zero.
B)marginal profit will be negative.
C)marginal profit will be positive.
D)MR MC.

Question

If output is increased beyond the point where total profit is maximized,
A)marginal profit will be zero.
B)marginal profit will be negative.
C)marginal profit will be positive.
D)MR > MC.

Quizplus · Accepted Answer

If output is increased beyond the point of profit maximization, the marginal cost will exceed the marginal revenue, resulting in a negative marginal profit. Therefore, it is not an optimal choice for the firm to produce beyond the point of profit maximization.

If Output Is Increased Beyond the Point Where Total Profit