Question: Explain how, by examining a marginal revenue and marginal cost graph, you can determine the following: (a) Whether a firm is making an economic profit

Explain how, by examining a marginal revenue and marginal cost graph, you can determine the following:
(a) Whether a firm is making an economic profit or suffering a loss
(b) If the firm is suffering a loss, whether it should shut down or continue to operate in the short run.

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