A firm operating at MC = MR must be making a profit.

Name: A firm operating at MC = MR must be making a profit.
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Question

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A firm operating at MC = MR is producing at the point where marginal cost equals marginal revenue, which maximizes profit. However, this does not necessarily mean that the firm is making a profit. It could be breaking even or even incurring losses if the price is below the average total cost.

A Firm Operating at MC = MR Must Be Making