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Marginal cost
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== Decisions taken based on marginal costs == In perfectly competitive markets, firms decide the quantity to be produced based on marginal costs and sale price. If the sale price is higher than the marginal cost, then they produce the unit and supply it. If the marginal cost is higher than the price, it would not be profitable to produce it. So the production will be carried out until the marginal cost is equal to the sale price.<ref>[http://www.economicswebinstitute.org/glossary/refusaltosell.htm "Piana V. (2011), Refusal to sell β a key concept in Economics and Management, Economics Web Institute."]</ref>
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