To maximize profits, a perfectly competitive firm should do all the following except:
A) produce until economic profits are maximized.
B) produce until marginal cost equals price.
C) produce until marginal revenue equals marginal cost.
D) produce until per-unit profits are maximized.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms maximize profits by producing where marginal revenue equals marginal cost, not by focusing on per-unit profits.

To Maximize Profits, a Perfectly Competitive Firm Should Do All