In a competitive market with four firms (indicated as Firm 1,Firm 2, Firm 3, and Firm 4), which of the following is thecondition that enables all sellers to maximize profit?

Question

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In a competitive market with multiple firms, firms are price takers and cannot individually influence the market price. Therefore, to maximize profit, each firm should produce at the quantity where its marginal cost equals the market price (i.e., P = MC). As long as all firms have the same marginal cost, they will all produce at the same quantity and will each be maximizing their profit.

In a Competitive Market with Four Firms (Indicated as Firm