Since all competitive firms produce wherever marginal cost equals the market price for the product, we can conclude that:
I. all competitive firms produce at the same marginal cost level.
II. all competitive firms produce the same quantity.
III. all competitive firms make normal profit.

Question

Quizplus · Accepted Answer

All competitive firms produce at the same marginal cost level because they equate marginal cost to the market price. However, the quantity produced and profit levels can vary due to differences in cost structures and market conditions.

Since All Competitive Firms Produce Wherever Marginal Cost Equals the Market