Share This Article:

Economic Definition of total analysis perfect competition. Defined.

Offline Version: PDF

Term total analysis perfect competition Definition: A perfectly competitive firm produces the profit-maximizing quantity of output that generates the greatest difference between total revenue and total cost. This total 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 marginal revenue and marginal cost.

 

« shutdown perfect competition | perfect price discrimination »

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

Alphabetical Reference to Over 2,000 Economic Terms