In a perfectly competitive market, each firm produces:
A) the same quantity.
B) a potentially different quantity.
C) as much quantity as possible.
D) as little quantity as possible.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers and will produce the quantity where marginal cost equals marginal revenue, which can vary between firms due to differences in cost structures.

In a Perfectly Competitive Market, Each Firm Produces