The sufficient condition for a firm to be in equilibrium is that the
- marginal revenue curve is above the average revenue curve
-
marginal cost curve cuts the marginal revenue curve from below
- firm must show that it is profitable
- marginal cost must be equal to average revenue
The correct answer is: B
Explanation
A firm is said to be in equilibrium when it satisfies the following conditions:
- the first condition 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