Producer Equilibrium is attained only when marginal revenue is equal to marginal cost. Is it correct ?

Producer Equilibrium is attained only when marginal revenue is equal t

1.	Producer Equilibrium is attained only when marginal revenue is equal to marginal cost. Is it correct ?
Answer» Solution :The GIVEN statement is incorrect. Equally of marginal revenue (MR) and marginal cost (MC) is only one CONDITION for the EQUILIBRIUM of the firm. Another condition also NEEDS to be fulfilled for the establishment of the firm's equilibrium and that is: 'MC must be greater than MR after MC = MR OUTPUT level'.