Question

a perfectly competitive firm sells its output for $100 per unit and marginal cost is $100 per unit. to maximize short - run profit, the firm should:
a. decrease output.
b. shut down.
c. maintain its current output.
d. increase output.

Explanation:

In perfect competition, a firm maximizes short-run profit when its marginal revenue (MR, equal to the market price for these firms) equals its marginal cost (MC). Here, the price (MR) is $100 per unit, and marginal cost is also $100 per unit, so the profit-maximizing condition is already satisfied.

Answer:

c. maintain its current output.