Question on: SS2 Economics - Price And Quantity Determination Under Perfect Competition

At what point do producers in perfect competition produce and sell the quantity that maximizes their profits?

View related lesson
A

Where their marginal cost equals the market price

B

Where their marginal revenue equals the market price

C

Where their average cost equals the market price

D

Where their total revenue equals the market price

Ask EduPadi AI for a detailed answer
Correct Option: A

(Producers in perfect competition produce and sell the quantity that maximizes their profits at the point where their marginal cost equals the market price)

Add your answer

Notice: Please post responsibly.

Please share this, thanks!

No responses