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Question
Condition for equilibrium in monopoly:
- MC is equal to MR.
- MC curve cuts the MR from below.
Options
Option (i) is correct.
Option (ii) is correct.
Both options are correct.
None of the above.
MCQ
Fill in the Blanks
Solution
Both options are correct.
Explanation:
Equilibrium requires the following conditions:
- Marginal revenue equals marginal cost.
- The marginal revenue curve is cut from below by the marginal cost curve.
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Ordinal Approach (Utility Analysis)
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