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WAEC Economics 1992 Question 31

Question 31

Market Structures

A market condition where profit is maximized when MR = AR = MC = P is known as

  1. A.monopoly
  2. B.oligopoly
  3. C.monopsony
  4. D.perfect competition
  5. E.duopoly.
Show the answer and explanation

Answer: D (perfect competition)

Explanation

Only a perfect competitor has P = AR = MR, so its profit-maximising point MC = MR also equals price.