This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
According to the graph shown,if a firm is producing at Q2,and it is identical to others in the market:

Question

This graph represents the cost and revenue curves of a firm in a perfectly competitive market. 
According to the graph shown,if a firm is producing at Q2,and it is identical to others in the market:

Quizplus · Accepted Answer

At Q2, the firm is producing where marginal revenue (MR) is equal to marginal cost (MC), which means it is producing at the profit-maximizing level of output. However, at this level of output, the price (P2) that the firm receives is equal to the average total cost (ATC2), indicating that economic profits are zero. Since the firm is earning only normal profits, there is no incentive for new firms to enter the market, and existing firms do not have a reason to exit. Thus, only option C is true.

This Graph Represents the Cost and Revenue Curves of a Firm