FIGURE 11- 2
-Refer to Figure 11- 2. In diagram A, the profit- maximizing output for a competitive firm is one where

Name: FIGURE 11- 2 -Refer to Figure 11- 2. In diagram A, the profit- maximizing output for a competitive firm is one where
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Question

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In a competitive market, a firm's profit-maximizing output is where marginal cost (MC) equals marginal revenue (MR), which is also equal to price (P) and average revenue (AR). Therefore, the correct choice is C - P = AR = MC.

FIGURE 11- 2 -Refer to Figure 11- 2. in Diagram A, the Profit-