When the perfectly competitive firm maximizes profits the price of its product always equals

Question

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In a perfectly competitive market, the price of the product equals average revenue (AR), marginal revenue (MR), and marginal cost (MC) at the point of profit maximization. This is because firms in perfect competition are price takers, meaning they sell their goods at the market price, which equals both AR and MR. Profit maximization occurs where MR equals MC.

When the Perfectly Competitive Firm Maximizes Profits the Price of Its