Short-Run optimal output level in a perfectly competitive market ■Goa: maximize profit Demand facing the industry: downward sloping Demand facing the firm: horizontal at P (all are price takers, and no one is large enough to affect market price) Optimal output level determined by DEPEMREMCShort-Run optimal output level in a perfectly competitive market ◼ Goal: maximize profit – Demand facing the industry: downward sloping – Demand facing the firm: horizontal at P (all are price takers, and no one is large enough to affect market price) ◼ Optimal output level determined by D=P=MR=MC