Question 6 1 pts Mark all that apply A market is in short ru

Question 6 1 pts Mark all that apply A market is in short run equilibrium if Markets clear Firms are profit maximizing. The number of firms is fixed. Profits are zero for all firms Consumers are utility maximizing.

Solution

The correct options are markets clear, firms are profit maximising and number of firms is fixed . A firm is in short run equilibrium when demand is equal to supply meaning all priduced is consumed. Profit is maximised at MR = MC