Profit maximization for a perfectly competitive firm is at the quantity where
A)price equals marginal revenue
B)the difference between price and marginal cost is the greatest
C)price equals marginal cost
D)marginal cost is at a minimum

Question

Quizplus · Accepted Answer

In perfect competition, firms maximize profit where price equals marginal cost, as this is where the firm cannot increase profit by producing more or less.

Profit Maximization for a Perfectly Competitive Firm Is at the Quantity