If Output Is Increased Beyond the Point Where Total Profit

question 144

Multiple Choice

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.

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Definitions:

Value Chain Activities

The range of activities that a business performs to deliver a valuable product or service to its customers, including both primary and support activities.

Available Technology

Refers to the current technologies that are accessible for use in various industries to enhance operations, products, or services.

High Fixed Costs

A financial situation where a company has a high proportion of fixed expenses, which do not vary with the level of production or sales.

High Marginal Costs

Situations where the cost to produce one additional unit is significantly high, often affecting pricing and profitability.