If output is increased beyond the point where total profit is maximized,
A)total profits stay constant.
B)total profits will decline.
C)marginal profit will be positive.
D)MR will be increasing.

Question

Quizplus · Accepted Answer

When output is increased beyond the point of maximum profit, the cost of producing each additional unit may increase (due to diminishing returns or increased costs). This means that the marginal profit (the additional profit gained from producing one more unit) will decrease. If marginal profit is less than zero, total profits will decline.

If Output Is Increased Beyond the Point Where Total Profit