Home
Class 11
ECONOMICS
On the basis of the information given be...

On the basis of the information given below, determine the level of output at which the producer will be in equilibrium. Use the maginal cost and marginal revenue approach. Give reasons for your answer.

Text Solution

Verified by Experts


AR = MR in perfect competition and MC = `TC_(n)-TC_(n-1).`
The producer achieves equilibrium at 6 units of output. It is because this level of output satisfies both the conditions of producer's equilibrium.
(i) MC is equal to MR
MC becomes greater than MR after this level of output (equilibrium).
The producer does not achieve equilibrium at 3rd unit of output as MC lt MR after this level of output.
Promotional Banner

Topper's Solved these Questions

  • PRODUCER'S EQUILIBRIUM

    RADHA BHUGANA|Exercise Let Us Recapitulate|4 Videos

  • PRODUCER'S EQUILIBRIUM

    RADHA BHUGANA|Exercise MULTIPLE CHOICE QUESTIONS|8 Videos

  • PRODUCER BEHAVIOUR AND SUPPLY

    RADHA BHUGANA|Exercise LET US RECAPITULATE|1 Videos

  • SIMPLE APPLICATIONS OF TOOLS OF DEMAND AND SUPPLY

    RADHA BHUGANA|Exercise Long answer|3 Videos

Similar Questions

Explore conceptually related problems

On the basis of the information given below , determine the level of output at which the producer will be in equilibrium . Use the mariginal cost- marginal revenue approach. Give reasons for your answer.

On the basis of the information given below, determine the level of output at which the producer will be in equilibrium. Use the cost-marginal revenue approach. Give reasons for your answer.

From the following table find out the level of output at which the producer will be in equilibrium (use marginal cost and marginal revenue approach). Give reasons for your answer.

Giving reasons find out the level of output at which producer will be in equilibrium .(Use marginal cost and ,marginal revenue approach).

From the following schedule , find out the level of output at which the producer is in equilibrium ,using marginal cost and marginal revenue approach. Give reasons for your answer.

Identify the equilibrium level of output using marginal cost and marginal revenue approach. Give reasons for your answer.

From the following data find out the level of output that will give the producer maximum profit (Use marginal cost and marginal revenue approach). Give reasons for your answer.

On the basis of following data , determine producer's equilibrium through marginal cost- marginal revenue approach. Give reasons for your answer.

From the following table , find out the level of output at which the producer will be in equilibrium . Give reasons for your answer.

From the following schedule find out the level of output at which the producer is in equilibrium. Give reasons for your answer.