A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price.

Name: A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price.
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Question

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A perfectly competitive firm maximizes its profit by producing the level of output where marginal cost equals market price, not average total cost.

A Perfectly Competitive Firm Maximizes Its Profit by Producing the Level