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Profit Maximization (MR = MC)
AP Microeconomics · Perfect Competition
The Golden Rule

Firms maximize profit (or minimize loss) by producing perfectly at the quantity where Marginal Revenue equals Marginal Cost (MR = MC).

Key Curves
MR (Price): Horizontal in perfect competition.
MC (Marginal Cost): Rising slope. Cuts ATC and AVC at their lowest points.
ATC (Avg Total Cost): U-shaped average cost per unit.
AVC (Avg Variable Cost): Shutdown point is its minimum.
Tags
Perfect CompetitionMR=MCEconomic ProfitShutdown Rule
Market Price Control
Global Market Price ($): 30
Firm Analysis (At MR=MC)
Target Quantity: 0 Units
ATC per Unit: $0.00
Total Economic Profit: $0.00
Status: Operating Normally