The profit-maximizing output for the perfectly competitive firm occurs at the point at which

Question

Quizplus · Accepted Answer

A perfectly competitive firm maximizes its profit at the output level where marginal revenue (MR) equals marginal cost (MC) because at that point, the firm is producing the quantity where the additional revenue from selling one more unit (MR) is equal to the additional cost of producing one more unit (MC). This results in the highest level of profit for the firm. Therefore, choice C is the correct answer.

The Profit-Maximizing Output for the Perfectly Competitive Firm Occurs at the Point