A perfectly competitive firm maximizes its economic profit when it produces the quantity that sets

Name: A perfectly competitive firm maximizes its economic profit when it produces the quantity that sets
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

A perfectly competitive firm maximizes its economic profit by producing the quantity where marginal revenue (MR) equals marginal cost (MC). This is the point where the cost of producing an additional unit is exactly covered by the revenue it generates, ensuring maximum profit.

A Perfectly Competitive Firm Maximizes Its Economic Profit When It