A pasta producer is in a perfectly competitive market.To maximize profits,the pasta producer should make the output level where:

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the firm should produce at the quantity where marginal cost equals price in order to maximize profits. This is because producing any higher or lower quantity would result in a lower profit. At the output level where marginal cost is equal to price, the firm is producing at the most efficient level of production and any other level would result in a decrease in profits. Therefore, the best choice is D.

A Pasta Producer Is in a Perfectly Competitive Market