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The sufficient condition for a firm to be in equilibrium ...

The sufficient condition for a firm to be in equilibrium is that the

A.

Firm must show that it is profitable

B.

Marginal cost must be equal to average revenue

C.

Marginal revenue curve is above the average revenue curve

D.

Marginal cost curve cuts the marginal revenue curve from below

Correct answer is D

A firm is said to be in equilibrium when it satifies the following conditions:
- the first conditon for the equilibrium of the firm is that its profit should be maximum
- Marginal cost should be equal to marginal revenue
- Marginal cost must cut Marginal revenue from below