WAEC Economics 2011 Objective — Question 20
Question 20 of 50 from the West African Examinations Council (WAEC) Economics 2011 Objective paper, with the correct answer and a full explanation.
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Which of the following is obtainable in a perfect market?
- A. A. P = UR > AR
- B. B. MR = MC > P
- C. C. MR < P
- D. D. P = MR = MCCorrect
Explanation
In a perfect market price, marginal revenue and average revenue of firms are all equal. At equilibrium MC = MR = P, since MR = P, we can write MC = P.
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