Identify the correct below mentioned condition/conditions for equilibrium of a firm under perfect competition: (I) MR = MC (II) MR > MC (III) MR…

CA Foundation · Business Economics · PYQS · January 2025
Identify the correct below mentioned condition/conditions for equilibrium of a firm under perfect competition: (I) MR = MC (II) MR > MC (III) MR < MC (IV) MC should have a positive slope. (V) MC should have a negative slope.
(A) A. (II) and (V)
(B) B. (II) and (IV)
(C) C. (III) and (V)
(D) D. (I) and (IV)

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. (I) and (IV)

Topics: Price Determination in Different Markets

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