The short-run equilibrium in a perfectly competitive market requires that?

A. marginal cost be equal to total revenue
B. marginal cost and marginal revenue be equal
C. costs are mutually determined by buyers and sellers
D. the marginal cost curve cuts the total cost curve

Correct Answer:

Option B – marginal cost and marginal revenue be equal

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