For any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price intersects the
A)average total cost curve.
B)average variable cost curve.
C)marginal cost curve.
D)marginal revenue curve.

Question

Quizplus · Accepted Answer

In a competitive market, firms maximize profit by producing the quantity of output where the price equals the marginal cost, as this is where marginal revenue (equal to price in perfect competition) intersects the marginal cost curve.

For Any Given Price, a Firm in a Competitive Market