Which one of the following statements for a firm's equilibrium in Perfect Competition is not correct? (a) The market price must be greater or equal to average variable cost in the short run. (b) The market price must be equal to marginal cost. (c) The mar
In perfect competition, at equilibrium, marginal cost equals market price, and it typically increases as output increases. The incorrect statement is that marginal cost decreases at equilibrium; instead, marginal cost should rise.