Firms in perfectly competitive markets who wish to maximize profits should:

Question

Quizplus · Accepted Answer

All options correctly describe how firms in perfectly competitive markets should act to maximize profits. Producing more when marginal cost is less than marginal revenue, producing less when marginal cost is greater than marginal revenue, and producing at the point where marginal cost equals marginal revenue are all strategies that lead to profit maximization.

Firms in Perfectly Competitive Markets Who Wish to Maximize Profits