A perfectly competitive firm attains equilibrium at a point where:
A. Marginal revenue (MR) is equal to marginal cost (MC) and MC curve intersects MR curve from below
B. MC is equal to MR
C. MC is falling but is equal to average cost (AC)
D. MC is constant.
Answer:A
A perfectly competitive firm attains equilibrium at a point where:
A. Marginal revenue (MR) is equal to marginal cost (MC) and MC curve intersects MR curve from below B. MC is equal to MR C. MC is falling but is equal to average cost (AC) D. MC is constant.