Asked by
Chelsea Rosales
on Oct 12, 2024
Verified
A profit-maximizing perfect competitor will ___________ operate at that output at which MC = MR.
A) always
B) usually
C) sometimes
D) rarely
E) never
Profit-Maximizing
The process or strategy of adjusting production and sale levels to achieve the highest possible profit with the given resources and market conditions.
MC = MR
This refers to the condition where a firm's marginal cost (MC) is equal to its marginal revenue (MR), often used to determine the profit-maximizing level of output in microeconomic theory.
Perfect Competitor
A theoretical market structure where many firms sell an identical product, entry and exit are easy, and no single firm can influence the market price.
- Elucidate the connection between marginal cost, marginal revenue, average total cost, and how these factors influence the firm's decision on supply.
Verified Answer
GS
Learning Objectives
- Elucidate the connection between marginal cost, marginal revenue, average total cost, and how these factors influence the firm's decision on supply.