In the short run,if a perfectly competitive firm chooses to produce,then its profits are maximized by producing the quantity of output where marginal cost equals marginal revenue.

Question

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This statement is a basic principle of perfectly competitive markets. In the short run, a firm's profit maximizing point is where the marginal cost (MC) of producing an additional unit of output is equal to the marginal revenue (MR) received from selling that unit. At this point, the firm is maximizing its profits.

In the Short Run,if a Perfectly Competitive Firm Chooses to Produce,then