When a firm faces a perfectly competitive market and buys its inputs from perfectly competitive markets,the only choice the firm has to affect its profits is to:

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In a perfectly competitive market, the firm is a price taker and cannot affect the market price, so increasing or decreasing the selling price is not an option. However, the firm can adjust the quantity it produces to maximize profits. By producing more, the marginal revenue will decrease and could lead to negative profits. By producing less, the marginal cost will decrease, and profits will increase. Therefore, changing the quantity the firm produces is the only choice it has to affect its profits.

When a Firm Faces a Perfectly Competitive Market and Buys