Explain the conditions of producer's equilibrium under perfect completition.

Explanation

According to `MR - MC` approach, producer's equilibrium refers to stage of that output level at which :
1. `MC = MR`, As long as MC is less than `MR`, it is profitable for the producer to go on producing more because it adds to its profits. He stops producing more only when MC becomes equal to MR.
2. MC is greater than MR ater `MC = MR` output level: When MC is greater than MR after equilibrium it means producing more will lead to decline in profits.