If firms in a competitive industry independently operate to maximize profits,the ________ are eventually equalized across the firms.
A) total costs
B) marginal costs
C) profits
D) revenues

Question

Quizplus · Accepted Answer

In a competitive industry, firms maximize profits by producing where marginal cost equals marginal revenue. Since the price is the same for all firms in a competitive market, marginal costs are equalized across firms.

If Firms in a Competitive Industry Independently Operate to Maximize