Archive | Producers Equilibrium

Producer’s Equilibrium: MR-MC Approach, Perfect Competition and Diagrams! Conditions of Producer's Equilibrium – MR-MC Approach: Producer's equilibrium is often explained in terms of marginal revenue (MR) and marginal cost (MC) of production. Profit is maximized (or a producer strikes his equilibrium) when two conditions are satisfied - (i) MR = MC, and (ii) MC is rising (or MC is greater [...]