A perfectly competitive firm can maximize profits by producing the quantity at which MR exceeds MC by the greatest amount.

Name: A perfectly competitive firm can maximize profits by producing the quantity at which MR exceeds MC by the greatest amount.
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Question

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In a perfectly competitive market, a firm maximizes profits by producing the quantity at which marginal revenue (MR) equals marginal cost (MC), not by the quantity where MR exceeds MC by the greatest amount.

A Perfectly Competitive Firm Can Maximize Profits by Producing the Quantity