Respuesta :
When marginal revenue equals marginal cost, or when MR = MC, a fully competitive firm will make the decision that will maximize its profits.
What is a perfectly competitive market?
According to economic theory, perfect competition exists when all businesses sell the same goods, market share has no bearing on prices, businesses can enter or quit the market without any obstacles, consumers have perfect or complete information, and businesses are unable to set prices.
The qualities of perfect competitiveness are as follows:
- Market with a large number of customers and merchants.
- Free company entry and exit from the market.
- A uniform product should be offered by every business.
- Both buyers and sellers should be fully informed about the market.
- no pricing regulation.
A market that is designed to be completely free of abnormalities that may otherwise prevent the best pricing from being realized is referred to as a perfect market. These are some instances of this ideal market structure: a plenty of buyers. There are several sellers. Products are uniform.
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