Question

Pixmark is a leading provider in the laser printer industry. Consider a plot of the quantity of printers it produces versus the profit it makes as a result of selling those printers. Move the point labeled P in the interactive graph to the point where increasing production ceases to be profitable. 10,000 9,000 Which scenario best describes how profit changes as Pixmark increases production from zero printers to five printers? 8,000 O O O O profit decreases at a decreasing rate profit decreases at an increasing rate profit increases at an increasing rate profit increases at a decreasing rate () 2,000 1,000 0 0 1 2 7 9 10 8 3 4 5 6 Quantity of printers

Answer 1

10,000 9,000 8,000 7,000 6,000 (5) Pro 4,000 3,000 2,000 1,000 0 1 2 3 4 5 6 Quantity of printers 7 8 9 10

Last option is correct ie. Profit increases at a decreasing rate