Full equilibrium under perfect competition requires that?

  • A MC =MR and AC =AR
  • B MC = MR but AR>AC
  • C MR =MC =AR=AC
  • D TR>TC
  • E MR=MC
jamb 1982economics

The correct answer is C. MR =MC =AR=AC

Equilibrium in perfect competition is the point where market demands will be equal to market supply. 

The long-run equilibrium of a perfectly competitive market occurs when marginal revenue equals marginal costs, which is also equal to average total costs.

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