Yes, a firm operating in a perfectly competitive market maximizes its profit by adjusting its output until its marginal cost equals the output price. In perfect competition, there are many buyers and sellers, and firms are price takers, meaning they have no control over the market price. Therefore, to maximize profit, a firm sets its output level where its marginal cost (the cost of producing one additional unit) is equal to the market price. This ensures that any additional unit produced adds more to revenue than it does to cost, resulting in maximum profit.
