Which condition must hold for a profit maximizing firm in the short run in a competitive market ........

Economics (CUET) Theory of firm under perfect Competition

Which condition must hold for a profit-maximizing firm in the short run in a competitive market?

Price must be less than average variable cost.

Price must equal short-run marginal cost.

Price must equal long-run marginal cost.

Price must be less than average cost.

In the short run, profit maximization occurs where price equals short-run marginal cost (SMC).

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