When a firm in a perfectly competitive market is producing the optimal quantity, what is true?

Name: When a firm in a perfectly competitive market is producing the optimal quantity, what is true?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a perfectly competitive market, the price (P) that firms receive for their product is equal to the marginal revenue (MR) they earn from selling one more unit, and to maximize profit, firms produce where MR equals marginal cost (MC). Hence, P = MR = MC is the condition for optimal production.

When a Firm in a Perfectly Competitive Market Is Producing