A firm in a perfectly competitive market produces an optimal quantity when it produces the quantity where marginal:

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In a perfectly competitive market, the condition for optimal production is when the marginal cost (MC) of producing an additional unit is equal to the market price (P) of the good. This is because, in perfect competition, firms are price takers and cannot influence the market price. Therefore, producing up to the point where MC = P ensures that the firm is maximizing its profit or minimizing its loss.

A Firm in a Perfectly Competitive Market Produces an Optimal