Answer:
The quantity to maximize profit = 20 units
Explanation:
In a perfectly competitive market , profit is maximized at the quantity where the marginal cost is equal to marginal revenue.
Note that the MC is the change in total cost as a result of a change in total production unit by a unit
Marginal revenue is the change in total revenue as a result of selling additional unit of product. For a perfectly competitive it is equal to the selling price.
To maximize profit , MR = MC
MC- 4q MR- 80
4q = 80
q = 80/4 = 20
The quantity to maximize profit = 20 units
