Which of the following is/are true at equilibrium in a perfect competition? (1) MR = MC (2) AC = MC = AR = MR (3) MC is falling
Only 1 and 2
The correct answer is option 2. In perfect competition, equilibrium is achieved when marginal revenue (MR) equals marginal cost (MC), and price equals average revenue (AR) and MR. MC should be rising, not falling, at the point of equilibrium for profit maximization. So, statement (3) is incorrect.
Similar Questions
In relation to Production Possibilities Curve (PPC), which of the following statements is INCORRECT?
The laws of _____ describe the technically possible ways of increasing the level of output.
If the proportionate increase in the output is less than proportionate increase in the inputs it is said to be ____ returns.
The Long-Run Analysis of Production is done under which one of the following law of Production?
The ______ is a hypothetical representation of the amount of two different goods that can be obtained by shifting resources from the production of one, to the production of the other.
The curve of production possibility is concave in nature because of ____.
Identify the incorrect statement.
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Important Questions from Microeconomics
Which of the following statement is correct?
I. Indifference curves are sloping from left to right.
II. Higher indifference curve gives a higher level of utility.
Match List I with List II:
List- I
Shape of revenue curve of the firm
List – II
Market structure
A.
Kinked revenue-curve (I)
Monopolistic competition B.
Infinitely elastic straight line curve (II)
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Relatively less elastic curve (III)
Oligopoly D.
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Monopoly.
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Rare of inflation is equal to:
[A = Price Index]
