Answered: 39. A perfectly competitive firm…

39. A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price. True False

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section13.2: Profit Maximization And The Competitive Firm's Supply Curve

Problem 2QQ: How does a competitive firm determine its profit-maximizing level of output? Explain. When does a...

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Question

39. A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price.

True

False

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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