💰Maximizing profits in perfect competition requires setting production output where marginal revenue equals marginal cost.
💲Maximizing profits does not guarantee earning economic profit, which depends on whether total revenues are greater or less than total costs.
📈Profit can be calculated as total revenues minus total costs or price per unit minus average cost per unit multiplied by quantity produced.
📉When the price per unit is greater than the average cost per unit, the firm earns a profit. When the price per unit is less than the average cost per unit, the firm operates at a loss.
⚖️In perfect competition, the firm maximizes profits by producing output at a quantity where the price is equal to the marginal cost.