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20 June, 22:45

The perfectly competitive price and output level occur where

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  1. 20 June, 23:05
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    It occur where MR = MC

    Explanation:

    Perfectly competitive organization or firm is the one who is price taker, which states that they must accept the price at which it sells the goods to consumer.

    In a firm that is a perfectly competitive, the level of output as well as the price happen where the Marginal Cost is equal to the Marginal Revenue.

    It is stated as MR = MC.
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