A market structure where profit is maximized when marginal revenue, marginal cost and price are equal is known as

A market structure where profit is maximized when marginal revenue, marginal cost and price are equal is known as perfect competition. In perfect competition, there are many buyers and sellers, and no one has the power to influence prices. As a result, firms in perfect competition are price takers and must accept the market price. In this type of market, firms can only make profit by producing at the point where their marginal revenue equals their marginal cost, and where the market price is equal to that point.