Home
Class 11
ECONOMICS
At the state of producer's equilibrium m...

At the state of producer's equilibrium marginal cost of the firm should be rising.

Text Solution

Verified by Experts

The correct Answer is:
1
if marginal cost (MC) is falling then it is possible to increase profits by producing more. So MC should be rising at the state of producer's equilibrium.
Promotional Banner

Topper's Solved these Questions

  • PRODUCER'S EQUILIBRIUM

    SANDEEP GARG|Exercise Guidelines To NCERT|6 Videos

  • PRODUCER'S EQUILIBRIUM

    SANDEEP GARG|Exercise Revision|13 Videos

  • PRODUCER'S EQUILIBRIUM

    SANDEEP GARG|Exercise HIGHER ORDER THINKING SKILLS|7 Videos

  • PRICE DETERMINATION AND SIMPLE APPLICATIONS

    SANDEEP GARG|Exercise Long Answer Type Questions|28 Videos

  • PRODUCTION FUNCTION

    SANDEEP GARG|Exercise Practicals on TP, AP and MP|14 Videos

Similar Questions

Explore conceptually related problems

What is producer's equilibrium ? Explain the conditions of producer's equilibrium through the marginal cost and marginal revenue approach. Use diagram.

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.

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 (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).