Question

All firms find the profit-maximizing level of output where

A. P=MR
B. TR=TC
C. MR = MC
D. P=ATC
E. "FOUR for you, Glenn Coco! You go, Glenn Coco."

Answer 1

The profit-maximizing choice for a perfectly competitive firm occurs when marginal revenue (MR) equals marginal cost (MC), which is represented by the equation MR = MC.

Step-by-step explanation:

The profit-maximizing choice for a perfectly competitive firm occurs when marginal revenue (MR) equals marginal cost (MC), which is represented by the equation MR = MC. In the given figure, the profit-maximizing level of output is Q = 80. This means that at Q = 80, the firm is producing the quantity of output that will maximize its profits.