3. What characterises the point of maximum on a Total Revenue graph?

Question

3. What characterises the point of maximum on a Total Revenue graph? Select one.

(a) the point where the second derivative is positive

(b) the point where the gradient is parallel to the vertical (upright) axis

(c) the point at which the gradient is zero

(d) the point at which the derivative is equal to 1

Answer 1

derivative of the Total Revenue equation = 0 when the slope of the graph = 0

c) looks good

a) would be right, if the question asked for the minimum

d) is flat wrong for minimum or maximum

b)? equal to the vertical axis? No, that's undefined, but its inverse =0 which is c)