A perfectly competitive firm in the short run maximises its profit by producing the output where:
A) average cost equals price.
B) marginal product equals marginal revenue.
C) total profit is at maximum.
D) total profit is at minimum.

Question

Quizplus · Accepted Answer

In the short run, a perfectly competitive firm maximizes its profit by producing the output level where total profit is at its maximum. This typically occurs where marginal cost equals marginal revenue, leading to the optimal level of production for profit maximization.

A Perfectly Competitive Firm in the Short Run Maximises Its