1.

A table showing TC and TRof a firm is given . Calculate MC and MR find out the equilibrium level of output.

Answer»


Solution :
The producer achieves EQUILIBRIUM at 6 units of OUTPUT. It is because this level of output satisfies both the condition of producer's equilibrium :
(i) MC is equal to MR, and
(ii) MC becomes GREATER than MR after this level of output.


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