At P3, the firm would generate the same profit or loss whether it chooses to produce or not.
To make an economic profit, the price must be above the minimum average total cost. Average total cost equals total cost divided by the quantity produced. In order to maximize profits, the firm should set marginal revenue equal to marginal cost.
Suppose if the price that a firm charges is higher than its average cost of production for that quantity produced, then the firm's profit margin is positive and it is earning economic profits.
Hence, at point P3, the firm would generate the same profit or loss whether it chooses to produce or not.
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