Answered

IDNLearn.com is your trusted platform for finding reliable answers. Explore thousands of verified answers from experts and find the solutions you need, no matter the topic.

Under perfect competition, any profit-maximizing producer faces a market price equal to its

A. average costs
B. marginal costs
C. total costs
D. variable costs

Sagot :

GinnyAnsweridn

Final answer:

Perfect competition firms maximize profit by producing at the point where marginal revenue equals marginal cost.


Explanation:

Profit Maximization in Perfect Competition

In perfect competition, a firm maximizes profit in the short run by producing the quantity where marginal revenue equals marginal cost. This condition is met when the market price equals the marginal cost, indicating the firm is operating efficiently. If the market price is above the average cost at the profit-maximizing quantity, the firm makes profits; otherwise, it incurs losses.


Learn more about Perfect competition and profit maximization here:

https://brainly.com/question/30108912


Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and see you next time for more reliable information.