If marginal profit is zero, then average profit is at a maximum.

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Quizplus · Accepted Answer

When marginal profit is zero, it typically indicates that total profit is at its maximum, not necessarily average profit. Marginal profit is the change in total profit from producing one more unit, and when it's zero, it means producing more won't increase total profit further. Average profit, however, is total profit divided by the quantity produced and can vary independently of marginal profit.

If Marginal Profit Is Zero, Then Average Profit Is at a Maximum