The firm under perfect competition will be in short-run equilibrium when the Marginal Revenue (MR) is equal to the rising Marginal Cost (MC). So, the correct answer is option B.

Here's why:

In perfect competition, a firm achieves equilibrium when it maximizes its profit, which occurs when the difference between total revenue and total cost is the greatest. This happens when the additional cost of producing one more unit of output (MC) equals the additional revenue gained from selling that additional unit (MR).

In the short run, the firm increases its output as long as the revenue from selling an additional unit (MR) is greater than the cost of producing that additional unit (MC). When MR equals MC, the firm maximizes its profit and is in equilibrium. If MR is less than MC, the firm reduces its output to reach equilibrium.

Therefore, the condition for short-run equilibrium in perfect competition is MR = MC, and MC must be rising to ensure that this is the maximum profit condition. If MC were falling, the firm could increase its profit by increasing output, so it would not be in equilibrium.

Question

The firm under perfect competition will be in short-run equilibrium when the Marginal Revenue (MR) is equal to the rising Marginal Cost (MC). So, the correct answer is option B.

Here's why:

In perfect competition, a firm achieves equilibrium when it maximizes its profit, which occurs when the difference between total revenue and total cost is the greatest. This happens when the additional cost of producing one more unit of output (MC) equals the additional revenue gained from selling that additional unit (MR).

In the short run, the firm increases its output as long as the revenue from selling an additional unit (MR) is greater than the cost of producing that additional unit (MC). When MR equals MC, the firm maximizes its profit and is in equilibrium. If MR is less than MC, the firm reduces its output to reach equilibrium.

Therefore, the condition for short-run equilibrium in perfect competition is MR = MC, and MC must be rising to ensure that this is the maximum profit condition. If MC were falling, the firm could increase its profit by increasing output, so it would not be in equilibrium.

Knowee AI · Accepted Answer

The firm under perfect competition will be in short-run equilibrium when the Marginal Revenue (MR) is equal to the rising Marginal Cost (MC). So, the correct answer is option B.

Here's why:

In perfect competition, a firm achieves equilibrium when it maximizes its profit, which occurs when the difference between total revenue and total cost is the greatest. This happens when the additional cost of producing one more unit of output (MC) equals the additional revenue gained from selling that additional unit (MR).

In the short run, the firm increases its output as long as the revenue from selling an additional unit (MR) is greater than the cost of producing that additional unit (MC). When MR equals MC, the firm maximizes its profit and is in equilibrium. If MR is less than MC, the firm reduces its output to reach equilibrium.

Therefore, the condition for short-run equilibrium in perfect competition is MR = MC, and MC must be rising to ensure that this is the maximum profit condition. If MC were falling, the firm could increase its profit by increasing output, so it would not be in equilibrium.

33.The firm under perfect competition will be in short-run equilibrium, when: A. Rising marginal cost is equal to the minimum average cost B. Marginal revenue is equal to rising marginal cost C. Average revenue is equal to average cost D. Marginal revenue is equal to the falling marginal cost

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