A perfectly competitive firm in the short-run maximizes its profit by producing the output where:

Name: A perfectly competitive firm in the short-run maximizes its profit by producing the output where:
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Question

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In the short run, a perfectly competitive firm maximizes its profit by producing the output where marginal cost equals marginal revenue. This is because at this point, the firm is producing the quantity of output that will generate the greatest difference between total revenue and total cost.

A Perfectly Competitive Firm in the Short-Run Maximizes Its Profit