A profit maximizing competitive firm will continue to produce in the range when marginal cost is falling till the marginal revenue is more than marginal cost. So long as the profit tends to increase and equilibrium output is not reached, it will be reached when marginal cost is equal to marginal revenue.

Therefore, a profit maximizing firm can produce a positive level of output in the range a marginal cost is falling. However, it will produce positive output as long as marginal cost becomes equal to marginal revenue that is up to the equilibrium point.