The graph of a company's profit function is shown. For the given problem, use the graph to answer the following questions about points A, B, and C. Rank from smallest to largest the marginal profit at these points.
A) C A B
B) B C A
C) C B A
D) A C B
E) A B C

Question

The graph of a company's profit function is shown. For the given problem, use the graph to answer the following questions about points A, B, and C. Rank from smallest to largest the marginal profit at these points. ​  ​
A) C A B 
B) B C A 
C) C B A 
D) A C B 
E) A B C

Quizplus · Accepted Answer

Marginal profit is represented by the slope of the profit function. At point C, the slope (or marginal profit) is the steepest, indicating the highest rate of increase in profit with a small increase in output. At point B, the slope is less steep, but still positive, indicating an increase in profit with an increase in output. At point A, the slope is zero, indicating that there is no increase or decrease in profit with an increase in output. Therefore, the ranking from smallest to largest marginal profit is C, B, A.

The Graph of a Company's Profit Function Is Shown