Question

At the most profitable level of production, a firm's marginal cost will be _____ the market price.

a. equal to
b. set by
c. less than
d. greater than

Answer 1

At the most profitable level of production, a firm’s marginal cost will be equal to the market price.

A. Equal to

Step-by-step explanation:

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Answer 2

At the most profitable level of production, a firm's marginal cost will be EQUAL TO the market price.

Market price = Marginal Cost is an indication that there is perfect or pure competition in the market. This means that no business is big enough to influence the market price of a homogeneous product.