When marginal revenue for a firm equals marginal cost,what can be said about the firm

Question

Quizplus · Accepted Answer

When marginal revenue equals marginal cost, the firm is producing the quantity that maximizes its profit. However, if the cost equals or exceeds the revenue, the firm is minimizing its losses, rather than generating profits. Therefore, option B is correct. Options A, C, and D can't be true in a general sense because we can't determine the level of profit or loss without knowing additional information about the cost and revenue of the firm.

When Marginal Revenue for a Firm Equals Marginal Cost,what Can