Final answer:
The profit-maximizing point for suppliers in a competitive market being where MR equals MC is True. This equality signifies the optimal level of production for a perfectly competitive firm.
Step-by-step explanation:
The statement that the profit-maximizing point for suppliers in a competitive market is where marginal revenue (MR) equals marginal cost (MC) is True. In a perfectly competitive market, firms determine the optimal level of production by producing up to the point where MR = MC.
This ensures that firms are not leaving any profits on the table by producing too little, nor are they decreasing profits by producing too much, where the additional cost of producing one more unit (MC) exceeds the additional revenue gained (MR). The figure showing that this occurs at Q = 80 reinforces this concept.
Moreover, the scenario described in the reference explains a situation where the maximum profit occurs at any output level between 70 and 80 units of output, but MR = MC only at 80 units. This slight discrepancy is due to the fact that as long as the firm is in the zone where MR > MC, it is beneficial to keep expanding production.
When MR drops below MC, it is no longer profitable to expand, hence MR = MC becomes the signal to stop production expansion, making it the target output level. Additionally, this standard of production ensures allocative efficiency, meaning that the benefits to consumers are theoretically equal to the costs of production for society.