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in a competitive market when output is produced so that the marginal benefit or price equals the marginal cost there is

Respuesta :

Answer:

PROFIT MAXIMIZATION

Explanation:

In a competitive market when output is produced so that the marginal benefit or price equals the marginal cost there is Profit maximization because in a perfectly competitive market, profit is maximized where marginal revenue or benefit equals marginal cost.

The above is the reason why a firm in perfect competition will wish to produce the quantity at which marginal cost is equal to price