When a purely competitive market is in equilibrium:
A) marginal cost equals marginal benefit.
B) total cost equals total benefit.
C) average cost equals average benefit.
D) the sum of marginal cost and marginal benefit is maximized.

Question

Quizplus · Accepted Answer

In a purely competitive market equilibrium, marginal cost equals marginal benefit, ensuring that resources are allocated efficiently.

When a Purely Competitive Market Is in Equilibrium