Will a profit-maximising firm in a competitive market ever produce a positive level of output in the renge where the marginal cost is falling ? Give an explanation.

Will a profit-maximising firm in a competitive market ever produce a p

1.	Will a profit-maximising firm in a competitive market ever produce a positive level of output in the renge where the marginal cost is falling ? Give an explanation.
Answer» Solution :No, because the ESSENTIAL condition of producer's equilibrium is that marginal COST (MC) curve should be rising . So , aprofit -maximising firm will PRODUCE that quantityof OUTPUT at which its MC is rising and not falling.