-A perfectly competitive firm maximizes profits by producing at the point where

Name: -A perfectly competitive firm maximizes profits by producing at the point where
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Question

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In a perfectly competitive market, a firm maximizes its profits by producing at the level where price equals marginal cost (P = MC). This is because at this point, the cost of producing one more unit is exactly equal to the revenue gained from selling that unit, ensuring that profit is maximized.

-A Perfectly Competitive Firm Maximizes Profits by Producing at the Point