NECO Economics 2022 Objective — Question 21
Question 21 of 50 from the National Examinations Council (NECO) Economics 2022 Objective paper, with the correct answer and a full explanation.
Advertisement
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.
Advertisement
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.