GCE Economics 2022 Objective — Question 21

Question 21 of 50 from the General Certificate of Education (GCE) Economics 2022 Objective paper, with the correct answer and a full explanation.

The sufficient condition for a firm to be in equilibrium is that

A. the firm must show that it is profitable
B. marginal cost must be equal to average revenue
C. the marginal revenue curve is above the average revenue curve
D. the marginal cost curve cuts the marginal revenue curve from belowCorrect

Explanation

A firm attains equilibrium at the profit-maximizing point where P = AC = AR = MC = MR and the marginal cost curve cuts the marginal revenue curve from below.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Economics 2022 Objective More Economics past papers