Home
Class 11
ECONOMICS
Producer Equilibrium is attained only wh...

Producer Equilibrium is attained only when marginal revenue is equal to marginal cost. Is it correct ?

Text Solution

Verified by Experts

The given statement is incorrect. Equally of marginal revenue (MR) and marginal cost (MC) is only one condition for the equilibrium of the firm. Another condition also needs to be fulfilled for the establishment of the firm's equilibrium and that is: 'MC must be greater than MR after MC = MR output level'.
Promotional Banner

Topper's Solved these Questions

  • DEMAND AND ITS DETERMINANTS

    SANDEEP GARG|Exercise Model test paper 1|12 Videos

  • DEMAND AND ITS DETERMINANTS

    SANDEEP GARG|Exercise Model test paper 2|12 Videos

  • DEMAND

    SANDEEP GARG|Exercise Unsolved particles|4 Videos

  • ELASTICITY OF DEMAND

    SANDEEP GARG|Exercise Unsolved practicals|79 Videos