Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
878 views
in Economics by (64.9k points)

Explain the conditions of a producer’s equilibrium in terms of Marginal Cost and Marginal Revenue. Use diagram.

1 Answer

+1 vote
by (49.2k points)
selected by
 
Best answer

Firstly, MC = MR is a necessary condition of producers equilibrium as this the point when profits are maximized.

Secondly, if the MC increases further because of increase in quantity produced, then MC > MR. Essentially, this would mean a fall in profits. 

These two conditions are necessary for explaining the producer's equilibrium using MC and MR. 

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...