As long as it does not shut down, a perfectly competitive firm earns the maximum profit as long as it operates so that

Question

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In a perfectly competitive market, a firm maximizes profit by producing at the level where marginal revenue (MR) equals marginal cost (MC). This is because at any quantity where MR > MC, producing one more unit increases profit, and where MR < MC, producing one more unit decreases profit.

As Long as It Does Not Shut Down, a Perfectly