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    Question

    Which of the following is a second-order condition of

    short-run equilibrium of firm under perfect competition?
    A MC = MR Correct Answer Incorrect Answer
    B MC = Price Correct Answer Incorrect Answer
    C Slope of MR < Slope of MC Correct Answer Incorrect Answer
    D Slope of MC < Slope of MR Correct Answer Incorrect Answer

    Solution

    Slope of MR < Slope of MC, i.e., MC must be rising for profit maximization

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