If Claeys, a candy-making firm that specializes in old-fashioned hard candies, chooses not to produce at a production level where its MR = MC, then it
A) is making as much profit as possible
B) will incur losses
C) cannot be earning a profit
D) should really shut down before it loses everything
E) is not earning maximum profit

Question

Quizplus · Accepted Answer

When a firm does not produce at a level where marginal revenue (MR) equals marginal cost (MC), it is not operating at its most efficient point, meaning it is not maximizing its profit. This principle is fundamental in microeconomics for profit-maximizing firms.

If Claeys, a Candy-Making Firm That Specializes in Old-Fashioned Hard