If the firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the marginal revenue is zero
(A) Perfect Competition
(B) Monopoly
(C) Oligopoly
(D) Monopolistic Competition
Correct Answer : Perfect Competition
Question Asked : SSC CGL Tier-I (CBE) Exam 2017
Explanation : If the monopoly firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where marginal revenue is zero. In contrast, perfect competition would supply an equilibrium quantity given by the point where average revenue is zero.
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Tags : Microeconomics
