At point A

Name: At point A
Brand: Quizplus
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Question

At point A

Quizplus · Accepted Answer

At point A, MC = MR, which means the firm is producing the quantity where its marginal cost is equal to its marginal revenue. This is the profit-maximizing level of output, where the firm is earning normal profit (zero economic profit). Therefore, neither option B nor option C is correct. Option D is incorrect as well because it contradicts the given information that MC = MR.

At Point a