The profit-maximizing condition for a perfectly competitive firm is:
A) MR = P.
B) MR = AVC.
C) P = MC.
D) P = AVC.

Name: The profit-maximizing condition for a perfectly competitive firm is: A) MR = P. B) MR = AVC. C) P = MC. D) P = AVC.
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Question

Quizplus · Accepted Answer

In a perfectly competitive market, the profit-maximizing condition is when the price (P) equals the marginal cost (MC), as firms are price takers and maximize profit where P = MC.

The Profit-Maximizing Condition for a Perfectly Competitive Firm Is