Which of the following is always TRUE in the short run for a perfectly competitive firm that is maximizing economic profits?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a profit-maximizing firm will produce at the level where marginal revenue (MR) equals marginal cost (MC). Since the firm is a price taker, the price (P) it can charge for its product is determined by the market, and this price equals the demand (d) facing the firm and its marginal revenue (MR). Thus, P = d = MR = MC is always true in the short run for a perfectly competitive firm maximizing economic profits.

Which of the Following Is Always TRUE in the Short