Under perfect competition the marginal revenue is equal to price. So the formula MR=MC becomes P=MC. The individual firm, under perfect competition, maximises its net revenue by fixing output at the point where its marginal cost is equal to the market price of the product.
Under perfect competition the marginal revenue is equal to price. So the formula MR=MC becomes P=MC. The individual firm, under perfect competition, maximises its net revenue by fixing output at the point where its marginal cost is equal to the market price of the product.