InterviewSolution
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InterviewSolution
| 1. |
MR-MC approach of producer equilibrium |
| Answer» Two following conditions should be satisfied:-1. MC = MRThis is satisfied at 2 points in the schedule.2. MC > MR after MC = MRThis is satisfied only at one point as at the first point, the MC curve dips but at the second point it increases. Hence, the second point will be the point of equilibrium as if the consumer goes on producing after this point he will gain losses.MR MC Approach is also known as Producer\'s Equilibrium.( graph can be seen from any guide) | |