Answer:
The answer is C.
In a perfect competition market, profit maximization is only achieved when a firm produces output level resulting to its marginal cost equals market price, that is P=MC.
Explanation:
A firm's profit will not be maximized until its marginal revenue to product an additional unit of product equals its marginal costs, that is MR = MC.
Theoretically, in a perfect competitive market, marginal revenue equals to the market's price at all level of outputs that is MR = P.
Thus, a firm maximizes its economic profit when it has its output resulting in marginal cost equals market price, which is also equals to its marginal revenue, that is P = MC = MR.
