The potential energy of the toy rocket is highest when it reaches its maximum height. Potential energy, in the context of gravitational potential energy, is given by the formula \( PE = mgh \), where \( PE \) is the potential energy, \( m \) is the mass of the rocket, \( g \) is the acceleration due to gravity, and \( h \) is the height above the ground.
As the rocket ascends, its height \( h \) increases, which in turn increases its potential energy. When the rocket reaches the peak of its flight, it momentarily stops ascending before descending, at which point it has the greatest height—and therefore the greatest potential energy. After this point, as it falls back to the ground, its height decreases and so does its potential energy. Therefore, the rocket has the most potential energy at the top of its flight.