Describe what it means economically when the derivative of a company’s profit…

MATHEMATICS · Subjective · AP · Calculus AB · Analytical Applications of Differentiation · Analytical Applications of Differentiation

Problem

Describe what it means economically when the derivative of a company’s profit function

P(q)

with respect to quantity

q

equals zero at a production level

q=q_0

and the second derivative is negative at that point.