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As an AI, I cannot say what is the best way to arrange the file structure for both the backend and frontend in MERN, as it depends on the project requirements, size, and complexity.

However, a common approach is to have separate directories for the server-side backend code and client-side frontend code. Within each directory, the code can be structured based on features or modules, such as user authentication, product management, and so on.

For example, the backend code can be structured as follows: - models: Define database schema and data models - controllers: Handle business logic and HTTP requests - routes: Define the API endpoints and HTTP methods - middleware: Implement custom middleware functions

The frontend code can be structured in a similar manner: - components: Reusable UI components - pages: Represent different pages/views of the application - utils: Utility functions or modules - styles: CSS or SASS files

In both cases, it is important to keep the file structure organized, modular, and scalable. It is also a good practice to follow existing patterns or frameworks, such as the Model-View-Controller (MVC) pattern on the backend or React component structure on the frontend.