ANswer
option 2
MR>ATC
the firm is producing at MC=P where P=MR as the firm is a price
taker
also, the firm is making an economic profit
means
economic profit =(P-ATC)*Q
the profit is positive so the P>ATC which means the
MR>ATC
If a perfectly competitive firm is producing at the P MC output and realizing an economic...
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