Firms that operate in perfectly competitive markets try to
A)maximize revenues.
B)maximize profits.
C)equate marginal revenue with average total cost.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Firms in perfectly competitive markets aim to maximize profits by producing at the point where marginal cost equals marginal revenue. Maximizing revenue or equating marginal revenue with average total cost may not always lead to the highest level of profit.

Firms That Operate in Perfectly Competitive Markets Try to