Which is necessarily true for a purely competitive firm in short-run equilibrium?
A) Marginal revenue minus marginal cost equals zero.
B) Price minus average total cost equals zero.
C) Total revenue minus total cost equals zero.
D) Marginal revenue is zero.

Question

Quizplus · Accepted Answer

In short-run equilibrium, a purely competitive firm maximizes profit where marginal revenue equals marginal cost, so the difference is zero.

Which Is Necessarily True for a Purely Competitive Firm in Short-Run