Introduction to Profit in a Perfectly Competitive Firm

What you’ll learn to do: analyze a firm’s profit margin

Image of lettered dice that spell out, "Profit, loss, risk".

So far, you’ve learned about perfect competition and what quantity a perfectly competitive firm will want to produce. In this section, we’ll examine profit and determine how much profit a perfectly competitive firm can earn, and at what point it should consider shutting down. Learn how perfectly competitive firms make their one important decision of how much to produce.



Did you have an idea for improving this content? We’d love your input.

Improve this pageLearn More