Equilibrium price in the market is determined by the

Options

A. (a)equality between marginal cost and average cost.
B. (b)equality between total cost and total revenue.
C. (c)equality between averagecost and average revenue.
D. (d)equality between marginal cost and marginal revenue.

Answer

D

Explanation

The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. This is the point at which the demand and supply curves in the market intersect. Both under perfect competition and monopolistic competition, the firm is in equilibrium at the point of equality of marginal cost and marginal revenue. (MC = MR).