Marginal Profit help?

Marginal Profit help?



The two blanks in the question below have a drop-down that has the option to select either POSSIBLE or NOT POSSIBLE.

Question: If the marginal profit is negative for the sale of a certain number of units of a product, is the company that is marketing the item losing money on the sale? Explain.

Answer (fill in the blanks): If the marginal profit is negative for the sale of a certain number of units, it is _____________ (POSSIBLE or NOT POSSIBLE) to know whether the company is losing money on the total sale. However, it is _____________ (POSSIBLE or NOT POSSIBLE) to say that the company is losing money on the sale of any more units sold at that point.





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