For a perfectly competitive firm, profit maximization (or loss minimization) occurs at the level of output at which

Question

Quizplus · Accepted Answer

Profit maximization (or loss minimization) for a perfectly competitive firm occurs at the level of output where Marginal Revenue (MR) equals Marginal Cost (MC), as this ensures that the firm is producing at a level where the cost of producing one more unit is exactly covered by the revenue it generates.

For a Perfectly Competitive Firm, Profit Maximization (Or Loss Minimization)