Respuesta :
Comparing total cost and total revenue to determine the highest profit. As long as it accepts the current market price, a company that operates in a highly competitive environment is free to sell as much as it wants.
Total revenue will rise if an organization sells more units at a given price.
How does a perfectly competitive business determine pricing?
A perfectly competitive business cannot set its own price because it must pay what the market's demand and supply for the product dictate. The profit equation already takes this into account, so the highly competitive company can sell as many units as it wants at the same price.
The quantity with the greatest disparity between total revenue and total costs will yield the greatest profit. A straight line rising is the total revenue for a perfectly competitive business; The slope is proportional to the product's cost.
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