In a perfectly competitive dairy market, what strategy can dairy farmers adopt to enhance their profitability while ensuring consumer welfare is maximized?

In a perfectly competitive dairy market, dairy farmers can enhance their profitability by focusing on improving their production efficiency. This means they should find ways to produce milk at a lower cost without sacrificing quality, such as adopting better farming techniques or investing in more efficient equipment. By reducing costs, farmers can offer competitive prices to consumers while still making a profit. For example, if a farmer improves their feeding methods and reduces feed costs, they can lower the price of milk, attracting more customers and increasing sales. This strategy benefits consumers by providing them with affordable prices while allowing farmers to maintain their profitability.