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?
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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
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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)
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