Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

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 :

GinnyAnswer

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


Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.