Question

24.
A perfectly competitive firm will maximize
profit at the quantity at which the firm's
marginal revenue equals:
(A)
price
(B)
average revenue
(C)
total cost
for
marginal cost​

Answer 1

Answer:

The profit-maximizing choice for a perfectly competitive firm will occur at the level of output where marginal revenue is equal to marginal cost—that is, where MR = MC. This occurs at Q = 80 in the figure.