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» Solution :The given statement is correct. EQUALITY of marginal revenue (MR) and marginal cost (MC) is only one conditions for the equilibrium of the firm. Another conditions also NEEDS to be fulfilled for the ESTABLISHMENT of the firm's equilibrium and that is , MC mustbe GREATER than MR after MC=MR OUTPUT level'.