Profit maximization in a competitive market implies that output price equals marginal revenue and marginal cost.

Question

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In a competitive market, firms aim to maximize their profits by producing at a level where marginal revenue equals marginal cost. At this level of output, the price received for each unit sold will also equal the marginal revenue, resulting in the equality of output price, marginal revenue, and marginal cost.

Profit Maximization in a Competitive Market Implies That Output Price