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
jamb 2022english-language

The correct answer is D. marginal cost curve cuts the marginal revenue curve from below

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

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