Respuesta :
To Maximize the Profit the Firm should Decrease its production.
What are perfectly competitive firms?
- A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods. If a perfectly competitive firm attempts to charge even a tiny amount more than the market price, it will be unable to make any sales.
- Agricultural markets are examples of nearly perfect competition as well. Imagine shopping at your local farmers' market: there are numerous farmers, selling the same fruits, vegetables and herbs. You can easily find out the prices for the goods, but they are usually all about the same.
The three primary characteristics of perfect competition are
- no company holds a substantial market share,
- the industry output is standardized, and
- there is freedom of entry and exit. The efficient market equilibrium in a perfect competition is where marginal revenue equals marginal cost.
Therefore, to uphold its position in the market the firm should decrease
its production.
To know more about perfectly competitive firms, click the given links.
https://brainly.com/question/28071637
https://brainly.com/question/25327136
#SPJ4
