The short-run equilibrium in a perfectly competitive market requires that?
- marginal cost be equal to total revenue
-
marginal cost and marginal revenue be equal
- costs are mutually determined by buyers and sellers
- the marginal cost curve cuts the total cost curve
The correct answer is: B
Explanation
In the short run, equilibrium will be affected by demand.
A short run competitive equilibrium is a situation in which, the price is such that total the amount the firms wish to supply is equal to the total amount the consumers wish to demand