If business believes that the market price will be P1 level, the company will expand the scale of the plant to produce the level of production q3, in which LMC = P1. When the expansion ended, the average profits of the business will increase from AB to EF and gross profit increased from ABCD up EFGD. The output level is output in q3 to maximize profits for the business.So to maximize profits over the long term, the perfect competition are on sale at a price of P = MR = LMC
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