Firm X is producing the quantity of output at which marginal revenue equals marginal cost. It is earning

Question

Quizplus · Accepted Answer

The statement that Firm X is producing the quantity of output at which marginal revenue equals marginal cost only tells us that the firm is maximizing its profit or minimizing its loss. It does not provide information about the firm's total costs relative to its total revenue, which is necessary to determine whether the firm is earning a positive economic profit, an economic loss, or a normal profit.

Firm X Is Producing the Quantity of Output at Which