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?
In relation to Production Possibilities Curve (PPC), which of the following statements is INCORRECT?
The ________ explains the relation between inputs and outputs in a short period.
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.
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Identify the incorrect statement.
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(i) Study of an individual firm an industry - macro economics
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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.
If in a production process, all inputs are tripled, which of the following statements follows?
I. If the output is tripled, then decreasing returns to scale apply.
II. When the output is doubled, constant returns to scale apply.
III. If the output is more than tripled, then increasing returns to scale apply.
A market, in which there are a large number of firms, homogeneous product, infinite elasticity of demand for an individual firm and no control over price by firms, is termed as________.
If the two goods are substituted, then the indifference curve will be:
The government multiplier is given by (where c = MPC and t = tax rate)
