Homework Answers
Sol :
Option (c) is correct (as long as price is above or below the Marginal cost)
because of the following points :
- In case of perfectly competitive market , Average Revenue = Price = MARGINAL revenue
- And , profit maximising situation is the point where , MR = MC , and MC is rising after equilibrium.
- So , untill MR is equal to MC , firm will changes its production .
Add Answer to:
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