Discuss how a perfectly competitive firm decides how much output to produce

As such a hypercompetitive company delivers greater produce, the overall sales climbs at quite a stable speed defined either by specified price. Profits are going to be highest—or losses are going to be smallest—for a superbly competitive firm at the number of output where total revenues exceed total costs by the best amount

A perfectly competitive firm has only 1 major decision to make—what quantity to supply. As see why it's typically the case, examine a distinctive means of communicating that basic idea of earnings:

$\text{Profit}=\text{Total revenue}-\text{Total cost}$

$\text{Profit}=\left(\text{Price}\right)\left(\text{Quantity produced}\right)-\left(\text{Average cost) (Quantity produced}\right)$

That indicates that its agency's products has had a marvelously fluid price elasticity, the clients prepared to charge the same price for some amount of units of produce.