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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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