-Use the figure above to answer this question. Consider a perfectly competitive market experiencing good times. Figure ________ shows a firm maximising profit in the short run because it produces ________ units and makes an economic profit of ________.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a firm maximizes profit by producing at the quantity where marginal cost equals marginal revenue. Choice A correctly identifies a scenario where the firm produces 100 units and makes an economic profit of $2 per unit, which aligns with the principles of profit maximization in the short run.

-Use the Figure Above to Answer This Question