In pure competition, price is determined where the industry
A)demand and supply curves intersect.
B)total cost is less than total revenue.
C)demand intersects the individual firm's marginal cost curve.
D)average total cost equals total variable cost.

Question

Quizplus · Accepted Answer

In pure competition, price is determined at the point where the industry's demand and supply curves intersect. This intersection represents the market equilibrium price, where the quantity demanded by consumers equals the quantity supplied by producers.

In Pure Competition, Price Is Determined Where the Industry