The equality of marginal cost and marginal revenue is a condition necessary for equilibrium , but it is not by itselt sufficient to assure the attainment of producer's equilibrium . Comment.

The equality of marginal cost and marginal revenue is a condition nece

1.	The equality of marginal cost and marginal revenue is a condition necessary for equilibrium , but it is not by itselt sufficient to assure the attainment of producer's equilibrium . Comment.
Answer» <html><body><p><br/></p>Solution :The given statement is correct. <a href="https://interviewquestions.tuteehub.com/tag/equality-974006" style="font-weight:bold;" target="_blank" title="Click to know more about EQUALITY">EQUALITY</a> of marginal revenue (MR) and marginal cost (MC) is only one conditions for the equilibrium of the firm. Another conditions also <a href="https://interviewquestions.tuteehub.com/tag/needs-1112903" style="font-weight:bold;" target="_blank" title="Click to know more about NEEDS">NEEDS</a> to be fulfilled for the <a href="https://interviewquestions.tuteehub.com/tag/establishment-453083" style="font-weight:bold;" target="_blank" title="Click to know more about ESTABLISHMENT">ESTABLISHMENT</a> of the firm's equilibrium and that is , MC mustbe <a href="https://interviewquestions.tuteehub.com/tag/greater-476627" style="font-weight:bold;" target="_blank" title="Click to know more about GREATER">GREATER</a> than MR after MC=MR <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> level'.</body></html>