Suppose a firm finds it is better off operating than shutting down in the short run.What is true at the quantity at which marginal cost equals marginal revenue?

Question

Quizplus · Accepted Answer

At the quantity at which marginal cost equals marginal revenue, profit is maximized because the firm is producing the quantity where the additional revenue generated from selling one more unit equals the additional cost incurred in producing that unit. At this point, the firm is neither making a profit nor a loss, but instead is operating at the point of maximum profit.

Suppose a Firm Finds It Is Better Off Operating Than