WAEC Economics 2022 Objective — Question 21
Question 21 of 50 from the West African Examinations Council (WAEC) Economics 2022 Objective paper, with the correct answer and a full explanation.
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The sufficient condition for a firm to be in equilibrium is that the firm
- A. must show that it is profitable
- B. marginal cost must be equal to average revenue
- C. marginal revenue curve cuts the marginal cost curve from belowCorrect
- D. average revenue curve is above the marginal cost curve from below
Explanation
The sufficient condition for equilibrium of a firm is that the marginal cost curve cuts the marginal revenue curve from below.
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