Question on: JAMB Economics - 2024
An industry operating in a perfect competitive market situation will maximum profit when
A
DD < SS
B
MC > AC
C
MC = MR
D
MC < AR
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Correct Option: C
In a perfectly competitive market, a firm maximizes profit where marginal cost (MC) equals marginal revenue (MR):
- Marginal Cost (MC): Additional cost of producing one more unit.
- Marginal Revenue (MR): Additional revenue from selling one more unit.
- Profit Maximization: Occurs when \( MC = MR \).
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