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How are price and output determined under pure or perfect competition?

In: Economics [Edit categories]

Answer:

Price is determined by the market and Output level is the only choice the firm has to make. Since firms want to maximise profit, it will produce at a level where Marginal Cost equals Marginal Revenue. This is the profit maximisation point

First answer by Ashlebyebye. Last edit by Ashlebyebye. Contributor trust: 13 [recommend contributor ]. Question popularity: 4 [recommend question].

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