Question

Which one of the following conditions indicates that a firm is operating in a perfect competitive industry rether than a monopolistic industry?
A. The cost curve of the firm are u-shaped
B. The marginal cost curves Cuts the avarage cost curve at its minimum point
C. Output of the firm is where marginal revenue equals marginal cost
D. Marginal revenue equals avarage revenue

Answer 1

B. The marginal cost curves Cuts the avarage cost curve at its minimum point

EXPLANATION

In monopolistic competition, there are many producers and consumers in the marketplace, and all firms only have a degree of market control.