What is the correct answer?


Under perfect competition, a firm will be in equilibrium if:

A. MC = MR

B. MC cuts the MR from below

C. MC rises when it cuts the MR

D. All the above three conditions are fulfilled

Correct Answer :

D. All the above three conditions are fulfilled

Related Questions

At low prices, demand is likely to be: The relationship between MC and MP shown by the marginal cost concept… Cardinal approach includes arranging: When the income of consumer increases then budget line will: In case of income effect, the level of consumers satisfaction rises when: Nash equilibrium is applicable in case of: The reserve capacity in administration is advocated on the ground that… A budget line shows: For a commodity giving large consumers surplus, the demand will be: If production increases under increasing returns to scale, the cost will: Under the law of variable proportions, the average and the marginal product… Identify the work of T.W.Schultz: A market demand curve presumes that: Cross-elasticity of demand is measured as: The right of individuals to control productive resources is known as: The word ECONOMICS is derived from the Greek terms meanings: In the long run: The kink demand curve faced by an oligopolist is based on the assumption… The act of producing the output from more than one plant is concerned… The feasible part of the demand curve for the monopolist who is charging… The total utility is gained by consuming: If the marginal utility of apples to a consumer exceeds that of bananas… In general, most of the production functions measure: A fall in demand for the product under monopolistic competition will likely… If regardless of changes in its price, the quantity demanded of a commodity… If there are many firms producing similar but differentiated products,… The marshallian indirect utility function in the form of equation is: Labor theory was firstly rejected by: If the supply curve is not a straight line but curvilinear, the elasticity… The price under perfect competition is settled by: