The main decision for a profit-maximizing perfectly competitive firm is not what ________ but what ________.
A) level of output to produce; price to charge
B) price to charge; level of output to produce
C) level of output to produce; total revenue to achieve
D) price to charge; total cost to achieve

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers, meaning they cannot influence the market price and must accept it as given. Therefore, their main decision is not what price to charge but rather what level of output to produce to maximize profits.

The Main Decision for a Profit-Maximizing Perfectly Competitive Firm Is