For a perfectly competitive firm, the optimal quantity to produce is the quantity where the marginal cost of producing that quantity equals its:

Question

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In a perfectly competitive market, the optimal quantity for a firm to produce is where the marginal cost (MC) of producing an additional unit equals the market price (P) of the product. This is because, in perfect competition, firms are price takers and cannot influence the market price. Therefore, to maximize profit, they produce up to the point where the cost of producing one more unit (MC) is just equal to what they can sell it for (P).

For a Perfectly Competitive Firm, the Optimal Quantity to Produce