the firms is producing at a loss
the firm is at a break-even point
the firm is making the least profit
the supplementary cost of the firm is highest
the firm has maximum profit
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No no no! The Right answer is E.
A firm is at Break-even Point when Total cost equals Total Revenue. That is to say that the company neither made profit nor loss.
But the question says "Marginal cost equals Marginal Revenue of a product"
And we know that in a perfectly competitive firm, profit is maximized when Marginal cost equals Marginal revenue.
So take note please and check out the screenshots below...
the answer is option B, because when the producers income is the same amount with his cost of production, this means that he did not make any profit
