If a firm can maximize its profit by producing the output where the price is equal to its...
Question:
If a firm can maximize its profit by producing the output where the price is equal to its marginal cost, the firm is operating in:
a) in a monopolistically competitive market.
b) a monopolistic market.
c) a perfectly competitive market.
d) an oligopolistic market.
Marginal Cost:
The term marginal cost can be defined as the increment cost of a product as it measures the change in the total cost of a firm when it produces an additional unit of output in the market.
Answer and Explanation: 1
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View this answer- The correct option is c. A perfectly competitive market.
A perfectly competitive market has key features like- several buyers and sellers, no...
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Perfectly Competitive Market: Definition, Characteristics & Examples
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Chapter 3 / Lesson 63
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Learn the definition of perfect competition and understand how a perfectly competitive market works. Study the characteristics of a perfectly competitive market with examples.
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