When average profit is increasing with increases in output,marginal profit must be:
A) increasing.
B) less than average profit.
C) greater than average profit.
D) decreasing.
E) constant.

Question

Quizplus · Accepted Answer

When average profit is increasing, it means the addition of new units of output is adding more to the total profit than the units before, implying that the marginal profit (profit from the last unit produced) is higher than the average profit up to that point.

When Average Profit Is Increasing with Increases in Output,marginal Profit