JAMB - Economics (1982 - No. 38)
Full equilibrium under perfect competition requires that?
MC =MR and AC =AR
MC = MR but AR>AC
MR =MC =AR=AC
TR>TC
MR=MC
Explanation
Equilibrium in perfect competition is the point where market demands will be equal to market supply.
The long-run equilibrium of a perfectly competitive market occurs when marginal revenue equals marginal costs, which is also equal to average total costs.
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