If a firm in a perfectly competitive industry maximizes profit by producing 100 units and the marginal cost of the 100th unit is $23, the price is
A) more than $23 since it's earning an economic profit
B) $0.23
C) $2,300
D) $23
E) not able to be calculated from the data given

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the price is equal to the marginal cost at the profit-maximizing output level, which in this case is $23 for the 100th unit.

If a Firm in a Perfectly Competitive Industry Maximizes Profit