To answer the question, we need to determine whether the statement "Price is equal to Marginal Cost" is true or false in pure economics/microeconomics.

Step 1: Understand the terms:
- Price: The amount of money that a buyer pays to purchase a good or service.
- Marginal Cost: The additional cost incurred by producing one more unit of a good or service.

Step 2: Analyze the relationship between Price and Marginal Cost:
In pure economics/microeconomics, the relationship between Price and Marginal Cost is determined by the principle of profit maximization. According to this principle, a firm will maximize its profits by setting its output level where Marginal Cost equals Marginal Revenue.

Step 3: Determine if Price is equal to Marginal Cost:
In general, Price is not always equal to Marginal Cost. Price is determined by various factors such as market demand, competition, and pricing strategies. Marginal Cost, on the other hand, represents the additional cost of producing one more unit of a good or service.

Therefore, the statement "Price is equal to Marginal Cost" is generally false in pure economics/microeconomics.

Question

To answer the question, we need to determine whether the statement "Price is equal to Marginal Cost" is true or false in pure economics/microeconomics.

Step 1: Understand the terms:
- Price: The amount of money that a buyer pays to purchase a good or service.
- Marginal Cost: The additional cost incurred by producing one more unit of a good or service.

Step 2: Analyze the relationship between Price and Marginal Cost:
In pure economics/microeconomics, the relationship between Price and Marginal Cost is determined by the principle of profit maximization. According to this principle, a firm will maximize its profits by setting its output level where Marginal Cost equals Marginal Revenue.

Step 3: Determine if Price is equal to Marginal Cost:
In general, Price is not always equal to Marginal Cost. Price is determined by various factors such as market demand, competition, and pricing strategies. Marginal Cost, on the other hand, represents the additional cost of producing one more unit of a good or service.

Therefore, the statement "Price is equal to Marginal Cost" is generally false in pure economics/microeconomics.

Knowee AI · Accepted Answer

To answer the question, we need to determine whether the statement "Price is equal to Marginal Cost" is true or false in pure economics/microeconomics.

Step 1: Understand the terms:
- Price: The amount of money that a buyer pays to purchase a good or service.
- Marginal Cost: The additional cost incurred by producing one more unit of a good or service.

Step 2: Analyze the relationship between Price and Marginal Cost:
In pure economics/microeconomics, the relationship between Price and Marginal Cost is determined by the principle of profit maximization. According to this principle, a firm will maximize its profits by setting its output level where Marginal Cost equals Marginal Revenue.

Step 3: Determine if Price is equal to Marginal Cost:
In general, Price is not always equal to Marginal Cost. Price is determined by various factors such as market demand, competition, and pricing strategies. Marginal Cost, on the other hand, represents the additional cost of producing one more unit of a good or service.

Therefore, the statement "Price is equal to Marginal Cost" is generally false in pure economics/microeconomics.

In pure economics/microeconomics Price is equal to Marginal CostQuestion 3Select one:TrueFalse

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In pure economics/microeconomics Price is equal to Marginal Cost

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