A market structure where profit is maximized when marginal revenue, marginal cost and price are equal is known as

  • A perfect competition
  • B monopoly
  • C oligopoly
  • D imperfect competition

The correct answer is A. perfect competition

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

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