A market structure where profit is maximized when marginal revenue, marginal cost and price are equal is known as
-
perfect competition
- monopoly
- oligopoly
- imperfect competition
The correct answer is: A
Explanation
In order to maximize profits in a perfectly competitive market, firms set marginal revenue equal to marginal cost (MR=MC). MR is the slope of the revenue curve, which is also equal to the demand curve (D) and price