Answered

A firm will produce a level of output at which marginal revenue is equal to:

A. average revenue.
B. fixed costs plus variable costs.
C. marginal cost.
D. average cost.

Please select the best answer from the choices provided.



Answer :

GinnyAnswer

Final answer:

In perfect competition, a firm maximizes profit by producing where marginal revenue equals marginal cost, which is the same as the price in this scenario.


Explanation:

In perfect competition, a firm maximizes profit by producing at the output level where marginal revenue equals marginal cost (MR = MC). This occurs where price, which is the same as marginal revenue in perfect competition, is equal to marginal cost. The firm operates where MR = MC = P.


Learn more about Profit Maximization in Perfect Competition here:

https://brainly.com/question/30108912


Other Questions