Explain why it is true that for a firm in a perfectly competitive market, the profit-maximizing condition MR = MC is equivalent to the condition P = MC. When maximizing profits, MR = MC is equivalent to P = MC because _______

In profit maximization, [tex]MR = MC[/tex] corresponds to [tex]P = MC[/tex] since, for a fully competitive product, the marginal revenue curve is the same as its demand. If a company produces during this level, marginal income is lower than marginal cost.

This ensures that for each additional production unit, the company loses profit and should deliver less. [tex]MR > MC[/tex] the company produces less and may increase income by higher output.

To sum up, [tex]MR > MC[/tex] the company produces less and can make profit by increasing production [tex]MR < MC[/tex] the company produces more and can earn a profit by reducing the output.

Explain why it is true that for a firm in a perfectly competitive​ market, the​ profit-maximizing condition MR​ = MC is equivalent to the condition P​ = MC. When maximizing​ profits, MR​ = MC is equivalent to P​ = MC because _______

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Explain why it is true that for a firm in a perfectly competitive market, the profit-maximizing condition MR = MC is equivalent to the condition P = MC. When maximizing profits, MR = MC is equivalent to P = MC because _______