The short-run equilibrium in a perfectly competitive market requires that?
-
A.
marginal cost be equal to total revenue -
B.
marginal cost and marginal revenue be equal -
C.
costs are mutually determined by buyers and sellers -
D.
the marginal cost curve cuts the total cost curve
Correct Answer: Option B
Explanation
In the short run, equilibrium will be affected by demand.
A short run competitive equilibrium is a situation in which, the price is such that total the amount the firms wish to supply is equal to the total amount the consumers wish to demand