In the short run,a perfectly competitive firm will maximize profit by producing where:

Question

Quizplus · Accepted Answer

In the short run, a perfectly competitive firm will maximize profit by producing at the point where marginal cost (MC) equals marginal revenue (MR). This is because producing past this point would result in additional costs that outweigh the additional revenue generated. Similarly, producing before this point would mean that the firm is not fully exploiting its resources and thus not maximizing its profit. Therefore, the profit-maximizing level of output occurs where MC = MR.

In the Short Run,a Perfectly Competitive Firm Will Maximize Profit