Which of the following is true for a purely competitive firm in short-run equilibrium?
A)The firm is making only normal profits.
B)The firm's marginal cost is greater than its marginal revenue.
C)The firm's marginal revenue is equal to its marginal cost.
D)A decrease in output would lead to a rise in profits.

Question

Quizplus · Accepted Answer

In a purely competitive market, a firm in short-run equilibrium will produce at a level where marginal cost (MC) equals marginal revenue (MR) to maximize profits. This is a fundamental principle of microeconomics.

Which of the Following Is True for a Purely Competitive