At the production quantity where MR=MC, profit is?

When a firm produces at a quantity where marginal revenue (MR) equals marginal cost (MC), it is operating at the point of profit maximization. This condition reflects the optimal output level for a firm in a competitive market, where the additional revenue generated from selling one more unit of product equals the additional cost of producing that unit.

At this equilibrium point, any production level beyond this would result in marginal costs exceeding marginal revenues, causing profits to decline. Conversely, producing less would mean that the firm is not capitalizing on potential profits that could be earned by increasing production. Thus, the firm's decision to equate MR and MC ensures it is maximizing its profit potential given its cost structure and revenue generation capabilities.

While the other options—zero profit, negative profit, and average profit—represent different scenarios, they do not reflect the condition for maximum profit achieved when MR equals MC. This understanding is fundamental in determining the profitability of production decisions in agribusiness and farm management contexts.