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Question
Short run equilibrium of a firm in perfect competition is reached when __________.
Short run equilibrium of a firm in perfect competition is reached when __________.
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Solution
The correct option is C both the conditions are met
Short run equilibrium of a firm in perfect competition is achieved when
marginal cost is equal to the marginal revenue which means that the change in
total revenue if an additional unit of output is sold is equal to the change in
total cost if an additional unit of the same output is produced and after this point the marginal must be rising and greater than marginal revenue so MC curve should cut MR curve from below.
Short run equilibrium of a firm in perfect competition is achieved when marginal cost is equal to the marginal revenue which means that the change in total revenue if an additional unit of output is sold is equal to the change in total cost if an additional unit of the same output is produced and after this point the marginal must be rising and greater than marginal revenue so MC curve should cut MR curve from below.
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