Consider this statement

Question

When marginal revenue equals marginal cost, total cost equals total revenue, and the firm makes zero profit" DO you agree or disagree and please explain..

Answer 1

MR=MC is the profit maximizing point for a firm.

For each unit sold, marginal profit equals marginal revenue minus marginal cost. Then, if marginal revenue is greater than marginal cost, marginal profit is positive, and if marginal revenue is less than marginal cost, marginal profit is negative. When marginal revenue equals marginal cost, marginal profit is zero. Since total profit increases when marginal profit is positive and total profit decreases when marginal profit is negative, it must reach a maximum where marginal profit is zero

Answer 2

Disagree

First, price does not always equal marginal revenue.  In monopolies and monopolistic competition, marginal revenue is below price.

Second, marginal cost does not always equal total cost.  It is possible in all market structures for marginal cost to be higher or lower than average cost.  

Therefore, it does not follow that when marginal cost equals marginal revenue, total cost equals total revenue.  If, for example, there's a situation where the price is higher than marginal revenue and marginal cost is higher than average cost, then average revenue (price) will be higher than marginal revenue, and average cost will be lower than marginal cost.  In this case, total revenue will be higher than total cost, and the firm will earn a profit.

Answer 3

No because all firms produce up to the point where mc=mr.  The fact that they are equal does not mean ATC=p.