At what point does a perfectly competitive firm decide its output level?

Show Answers

When the price exceeds the marginal costWhen the price is exactly equal to the marginal costWhen the price falls below the marginal costNone of these choices

Explanation

In a perfectly competitive market, a firm maximizes profit by producing the quantity where the price of the product matches the marginal cost of production. If the price were higher, the firm could increase output for more profit; if lower, reducing output would be optimal.