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

is equivalent to both of the given conditions in a fully competitive market.

Explanation:

In profit maximization, corresponds to 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. the company produces less and may increase income by higher output.

To sum up, the company produces less and can make profit by increasing production the company produces more and can earn a profit by reducing the output.

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disadvantages of purchasing a vehicle: large down payment and vehicle depreciation

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answer; balance sheets;