Question: Please help me understand this question. We have marginal cost $2 and Price is 2 . Which means P=MR. MR=MC . $2=$2. If AVC is

Please help me understand this question. We have marginal cost $2 and Price is 2 . Which means P=MR. MR=MC . $2=$2. If AVC is $1 , Price > AVC which means we are getting more revenue so we have to produce more . That's means Answer is B. Is it correct way to come with the an answer?

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