The profit maximizing output level for a perfectly competitive firm is always where

Question

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In a perfectly competitive market, firms are price takers and can sell any amount of output at the prevailing market price. Therefore, the marginal revenue (MR) is equal to the price (P). To maximize profits, a firm will produce at a quantity where marginal cost (MC) is equal to marginal revenue (MR), which is also equal to price (P), because in a perfectly competitive market, firms can sell any amount of output at the prevailing market price. Therefore, the profit maximizing output level for a perfectly competitive firm is where P = MC.

The Profit Maximizing Output Level for a Perfectly Competitive Firm