Define: market power, perfect competition, two reasons why a perfect competitor has no market power In order to maximize profits, a perfect competitor will produce to the level (quantity) where marginal revenue (the additional revenue brought to the company from selling the last product) equals marginal cost (the additional cost incurred by the company for having produced the last product). Price Qty MR MC AVC ATC TR TC Profit $10 6 10 10 7.50 9.50 60 57 3 Follow horizontally on the line above. Note that at this level of output (quantity) MR = MC, or $10 = $10, so this is the most profitable level of output (quantity). Note that at this level ATC (Average Total Cost) is $9.50 per unit. Based on a selling price of $10, each unit produces $.50 profit times a quantity of 6 units which yields a $3 profit (last column). Using this horizontal line, how is the TR (Total Revenue) value of $60 determined, as well as TC (Total Cost) value of $57 determined? Perform some outside internet research and provide three (real world) examples of perfect competitors