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To maximize profit, a perfectly competitive firm 0 A. should sell the quantity o

ID: 1143571 • Letter: T

Question

To maximize profit, a perfectly competitive firm 0 A. should sell the quantity of output determined by the interaction between industry demand and supply. B. should produce the quantity of output that results in the greatest difference between marginal revenue and marginal cost. O c. should produce the quantity of output that results in the greatest difference between total revenue and total cost. 0 D. should sell the quantity of output that results in a value for total revenue that is equal to total cost.

Explanation / Answer

The correct choice is C

Explanation : - The profit equation for any firm is as follows

Profit = Total Revenue - Total cost

The higher the difference between total revenue and total cost, higher the profit.

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