In a perfectly competitive market, what is the primary condition for a firm to maximize its profit?

In a perfectly competitive market, the primary condition for a firm to maximize its profit is to produce at a level where its marginal cost equals the market price. This means that the cost of producing one more unit of a good should be the same as the price that consumers are willing to pay for that unit. If the marginal cost is less than the price, the firm can increase profits by making more products. Conversely, if the marginal cost is higher than the price, the firm would lose money on each additional unit produced. For example, if a bakery finds that the cost to make one more loaf of bread is $2, and the market price is $2, then it is maximizing its profit by producing that loaf.