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At the point of equilibrium of firm (under perfect competition)

This question belongs to Commerce Economics
Economics
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At the point of equilibrium of firm (under perfect competition)

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Correct Answer: Option A
At the point of equilibrium of firm (under perfect competition) MC curve must be rising. If the firm is producing at an output level where the MC is falling, then this implies that it can further increase the profit by slightly raising the level of output. Equilibrium is established at the point where the MR is equal to MC and MC is rising.
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