The perfectly competitive firm produces at the point where price equals marginal cost because this is the quantity that

Name: The perfectly competitive firm produces at the point where price equals marginal cost because this is the quantity that
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

In perfect competition, firms maximize profit by producing where price equals marginal cost, as this is where marginal revenue equals marginal cost, ensuring no additional profit can be made by producing more or less.

The Perfectly Competitive Firm Produces at the Point Where Price