Explain the conditions of producer's equilibrium under perfect complet

1.	Explain the conditions of producer's equilibrium under perfect completition.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :According to `MR - MC` <a href="https://interviewquestions.tuteehub.com/tag/approach-882321" style="font-weight:bold;" target="_blank" title="Click to know more about APPROACH">APPROACH</a>, producer's equilibrium refers to stage of that output level at which : <br/> 1. `MC = MR`, As <a href="https://interviewquestions.tuteehub.com/tag/long-537592" style="font-weight:bold;" target="_blank" title="Click to know more about LONG">LONG</a> as MC is less than `MR`, it is profitable for the producer to go on producing more because it adds to its <a href="https://interviewquestions.tuteehub.com/tag/profits-1168748" style="font-weight:bold;" target="_blank" title="Click to know more about PROFITS">PROFITS</a>. He stops producing more only when MC becomes equal to MR. <br/> 2. MC is greater than MR ater `MC = MR` output level: When MC is greater than MR after equilibrium it means producing more will lead to decline in profits.</body></html>

Explain the conditions of producer's equilibrium under perfect completition.