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Explain MR/MC approch

Answer» According to this approach, the firm is said to be in equilibrium if the following conditions are fulfilled:1.Marginal cost is equal to Marginal Revenue i.e. ( MC = MR )2.Marginal cost (MC) Cuts Marginal Revenue (MR) from Below.3.Marginal cost (MC) Cuts Average Cost (AC) from the Minimum point.


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