If a perfectly competitive firm produces at an output level where marginal cost equals marginal revenue,then

Question

Quizplus · Accepted Answer

When marginal cost equals marginal revenue, the last unit produced adds the same amount to costs as it does to revenue. This is because marginal revenue represents the additional revenue earned from selling one additional unit, while marginal cost represents the additional cost incurred from producing and selling one additional unit. Therefore, the firm is producing efficiently and maximizing its profits.

If a Perfectly Competitive Firm Produces at an Output Level