Question

35. A firm can achieve equilibrium when its
(A) MC =MR
(B) MC = AC
(C) MR = AR
(D) MR = AC​

Answer 1

Answer:

MC=MR=AC=AR refers to long run equilibrium of a competitive firm. Perfect competition is a form of the market in which there is a large number of buyers and sellers and where homogeneous product is sold at a uniform price.

Explanation:

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Answer 2

Answer:

A firm can achieve equilibrium when its MC=MR

Explanation:

The marginal cost of production (MC) and marginal revenue (MR) are measures used to determine the amount of output and the price per unit of a product that will maximize profits. A firm's main objective is to gain as much profits, and it can be identified by the relationship between marginal revenue and the marginal cost of production. More specifically the point at which marginal revenue is equal to the marginal cost, this is achieving equilibrium.