The sufficient condition for a firm to be in eq... - JAMB Economics 2022 Question
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 option: d
Option D is the correct answer.
For a firm to be in equilibrium, it must fulfill the following conditions:
- It should earn maximum profit
- Marginal revenue must be equal to marginal cost
- Marginal cost must intersect marginal revenue from below
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