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The sufficient condition for a firm to be in equilibrium is that the

The sufficient condition for a firm to be in equilibrium is that the
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  • A Firm must show that it is profitable
  • B Marginal cost must be equal to average revenue
  • C Marginal revenue curve is above the average revenue curve
  • D Marginal cost curve cuts the marginal revenue curve from below
Correct Answer: Option D
Explanation:
A firm is said to be in equilibrium when it satifies the following conditions:
- the first conditon for the equilibrium of the firm is that its profit should be maximum
- Marginal cost should be equal to marginal revenue
- Marginal cost must cut Marginal revenue from below

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