Answer to Question #141484 in Microeconomics for anesu

Question

A perfectly competitive firm is in equilibrium where marginal cost is equal to marginal revenue because:

Answer 1

A perfectly competitive firm is in equilibrium where marginal cost is equal to marginal revenue because: it cannot determine the prices and demand of the products it offers. At this point, the price of the product will be equal to both average total cost of each product and marginal cost.