Profit maximization in monopolies is to marginal cost as competitive pricing is to what?

In a monopoly, profit maximization occurs when a firm sets its price where marginal cost equals marginal revenue. This means that the company produces the last unit of product that adds just enough revenue to cover the cost of making it. In contrast, competitive pricing in a market with many sellers happens when firms set prices equal to marginal cost. This ensures that consumers pay a price that reflects the cost of producing each additional unit, leading to efficient outcomes. For example, if a bakery sells bread, in a competitive market, it would price bread at a level where the cost of making one more loaf is the same as what customers are willing to pay for that loaf.