All along the beach in San Diego, California are shops which rent boogie boards for $3 per hour. Tourists perceive that all rental boogie boards are identical and there are no restrictions on entry and exit in the boogie board market. Suppose Surf's Up is a boogie board rental shop. To maximize profits, Surf's Up would produce a quantity where

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms maximize profit by producing at a quantity where marginal revenue equals marginal cost.

All Along the Beach in San Diego, California Are Shops