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» <html><body><p><br/></p>Solution :No, because the <a href="https://interviewquestions.tuteehub.com/tag/essential-975317" style="font-weight:bold;" target="_blank" title="Click to know more about ESSENTIAL">ESSENTIAL</a> condition of producer's equilibrium is that marginal <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> (MC) curve should be rising . So , aprofit -maximising firm will <a href="https://interviewquestions.tuteehub.com/tag/produce-1167752" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCE">PRODUCE</a> that quantityof <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> at which its MC is rising and not falling.</body></html>