A firm in a perfectly competitive market can maximize its profits by producing the level of output:

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a firm maximizes its profits by producing at the level of output where marginal cost (MC) equals marginal revenue (MR). This is because at this point, the cost of producing one more unit of output is exactly equal to the revenue gained from selling that unit, ensuring that profit is maximized.

A Firm in a Perfectly Competitive Market Can Maximize Its