Final answer:
Perfect competition firms maximize profit by producing at the point where marginal revenue equals marginal cost.
Explanation:
Profit Maximization in Perfect Competition
In perfect competition, a firm maximizes profit in the short run by producing the quantity where marginal revenue equals marginal cost. This condition is met when the market price equals the marginal cost, indicating the firm is operating efficiently. If the market price is above the average cost at the profit-maximizing quantity, the firm makes profits; otherwise, it incurs losses.
Learn more about Perfect competition and profit maximization here:
https://brainly.com/question/30108912
