For a perfectly competitive firm,profit maximization or loss minimization occurs at the output at which

Question

Quizplus · Accepted Answer

A perfectly competitive firm will maximize its profits by producing the quantity of output where marginal revenue (MR) equals marginal cost (MC). This is because in perfect competition, price (which is equal to marginal revenue) is equal to the marginal cost of production. Thus, the profit-maximizing level of output occurs at the point where the firm can sell its output for the same price it cost to produce.

For a Perfectly Competitive Firm,profit Maximization or Loss Minimization Occurs