Share This Article:

Economic Definition of marginal analysis perfect competition. Defined.

Offline Version: PDF

Term marginal analysis perfect competition Definition: A perfectly competitive firm produces the profit-maximizing quantity of output that equates marginal revenue and marginal cost. This marginal approach is one of three methods that used to determine the profit-maximizing quantity of output. The other two methods involve the direct analysis of economic profit or a comparison of total revenue and total cost.

 

« loss minimization perfect competition | profit analysis perfect competition »

Permalink: https://glossary.econguru.com/economic-term/perfect+competition,+marginal+analysis

Alphabetical Reference to Over 2,000 Economic Terms