Question
Equilibrium price in the market is determined by the
Answer: Option B
Answer: (b)
The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded.
This is the point at which the demand and supply curves in the market intersect. Both under perfect competition and monopolistic competition, the firm is in equilibrium at the point of equality of marginal cost and marginal revenue.
(MC = MR).
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Answer: (b)
The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded.
This is the point at which the demand and supply curves in the market intersect. Both under perfect competition and monopolistic competition, the firm is in equilibrium at the point of equality of marginal cost and marginal revenue.
(MC = MR).
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