Question

Which of the following conditions must hold to ensure that profits are, in fact, at a maximum?

		d(MC(Q))/dQ < 0
		d(MC(Q))/dQ > 0
		d(MC(Q))/dQ > 0 and d 2π(Q)/dQ 2 < 0
		d 2π(Q)/dQ 2 < 0

Answer 1

Answer = correct option is C

d(MC(Q))/dQ>0 and d^{​​​​​​2}​​​​​d2π(Q)/dQ^{​​​​​2}​​​​dQ2<0

This is the condition that must hold to ensure that profits are in fact at a maximum