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.

 

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