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**Basic Question 1 of 10**

Perfectly competitive firms ______

B. maximize total sales.

C. minimize total costs.

D. maximize profits.

A. maximize market share.

B. maximize total sales.

C. minimize total costs.

D. maximize profits.

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**User Contributed Comments**
6

User |
Comment |
---|---|

DannyZhou |
So do all other types of firms? |

EMerkert |
Monopolistic firms would first seek to maximize market share by undercutting competitors, once this is acheived then they can maximize profits by raising prices without much competition |

udhay |
Why not B,In perfect competition firms can make max profit only thru max sales |

Thescholar |
Maximising sales may lead to increased costs which may therefore not maximise profit |

vatsal92 |
Profit is the sole motive of perfect competition firms. |

fzhou |
MR = MC = ATC_min is profit maximizing rule. |

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**Learning Outcome Statements**

explain relationships between price, marginal revenue, marginal cost, economic profit, and the elasticity of demand under each market structure;

describe a firm's supply function under each market structure;

describe and determine the optimal price and output for firms under each market structure;

explain factors affecting long-run equilibrium under each market structure;

*CFA® 2024 Level I Curriculum, Volume 2, Module 9.*