A perfectly competitive firm maximizes profit where marginal revenue or pice equals marginal cost.

Name: A perfectly competitive firm maximizes profit where marginal revenue or pice equals marginal cost.
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Question

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In a perfectly competitive market, the firm is a price taker and has no control over the market price. Therefore, to maximize profit, the firm produces where marginal revenue equals marginal cost, which is the same as producing where price equals marginal cost.

A Perfectly Competitive Firm Maximizes Profit Where Marginal Revenue or Pice