Q354
A firm under perfect competition will be making minimum losses (in the short run) at a point where
A.
MC>MR
B.
MR>MC
C.
MC=MR
AnswerD.
AC=AR
Answer: Option C
Solution
Answer: Option C
Solution:
A firm under perfect competition will be making minimum losses (in the short run) at a point where MC=MR. In order to maximize profits in a perfectly competitive market, firms set marginal revenue equal to marginal cost (MR=MC).