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Using marginal cost and marginal revenue...

Using marginal cost and marginal revenue approach, find out the level of output at which producer will be in equilibrium. Give reasons for your answer.

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The producer achieves equilbrium at 5th unit of output. It is because this level of output satisfies both the conditions of producer's equilibrium
(i) MR = MC (Rs. 20)
(ii) MC gt MR (24 gt 20) after equlibrium level of output.
The producer does not achieve equilibrium at 2nd unit of output as it is followed by Mr gt MC.
Hence second condition is not satisfied is not satisfied at 2nd until of output level.
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