Question 30 of 36
Q.Equilibrium condition of a firm is ______.
(a) MC < MR
(b) MC = MR
(c) MR = Price
(d) MC > MR
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2025MCQ· 1mImportance★★★★★
83% · 30/36 Questions
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Start your 14-day free trial to unlock the full solution →A firm is in equilibrium (maximum profit) where MC = MR, so the answer is option (b).
A firm reaches equilibrium at the output level where its profit is maximised. This requires two conditions:
- Marginal Cost = Marginal Revenue (MC = MR) — the necessary condition.
- MC cuts MR from below (MC is rising and its slope is greater than that of MR) — the sufficient condition. …
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