Q#1. In this chapter, you learned that a perfectly competitive firm will choose to produce at any unit of output so that marginal revenue equals marginal cost. At first glance, this does not seem to make sense. One would expect that, for firms to get the most profits, they should produce at a point where marginal revenue exceeds marginal cost. Explain, in your own words, why a competitive firm would choose to produce so that marginal revenue equals marginal cost. Your answer must be at most 150 words ANSWER:

The competitive firms will always produce at the point where marginal revenue is equal to its marginal cost. This is because additional revenues earned should be more as compared to the additional cost at every output level produced. It means that there is still scope to earn...