Which of the following is obtainable in a perfect market?
ECONOMICS
WAEC 2010
Which of the following is obtainable in a perfect market?
- A. P = MR > AR
- B. MP = MC > P
- C. MR< P
- D. P = MR = MC
Correct Answer: D. P = MR = MC
Explanation
In a perfectly competitive market, the firm's demand curve is the firm's marginal revenue curve. The firm maximizes profits by producing where MR = MC.
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