If a firm is producing 12 units where marginal revenue equals marginal cost, what can be inferred about its profit status?

When a firm produces 12 units of a product and finds that marginal revenue equals marginal cost, it indicates that the firm is maximizing its profit at that level of production. Marginal revenue is the additional income the firm earns from selling one more unit, while marginal cost is the extra cost incurred from producing one more unit. When these two figures are equal, it means the firm is not losing money on the next unit it produces, nor is it gaining more profit by producing less. For example, if the firm makes $10 from selling one more unit, and it costs $10 to produce that unit, it is at a balanced point where profits are maximized. Therefore, the firm is likely making the most profit possible at that production level, meaning it should continue producing 12 units unless conditions change.