Write your comment of the statement in a sentence or two:In a state of – InterviewSolution

InterviewSolution

1.	Write your comment of the statement in a sentence or two:In a state of equilibrium, firm’s MC should be rising.
Answer» Yes. Falling MC means that the cost of producing an additional unit of output tends to reduce. In a situation when price is constant (as under perfect competition) this would mean a situation when the difference between the firm’s TR and TVC tends to increase. This means a situation when firm’s gross profit (TR – TVC) tends to rise. Why should a firm not increase output when its gross profits are rising? Certainly it will. Therefore, it is only when MC is rising that the firm will find its equilibrium output.

Discussion

No Comment Found

Related InterviewSolutions

What were the two main occupations of the Rig Vedic Aryans?
Name the two political institutions which exercised check on the powers of the King in the Rig Vedic period.
What w’as the position of women in the Rig Vedic age ?
Describe the social life of the Rig Vedic Aryans with reference to the following: (a) The Family Structure (b) Position of Women (c) Varna System
With reference to the following explain the main features of the Rig Vedic Economy: (a) Agriculture (b) Domestication of Animals (c) Trade Transactions, Crafts and Transportation
Mention any two archaeological sources to reconstruct the later Vedic Age.
Mention any two of the Ashrams in the life of a man in Aryan society.
What information do we gather from the later Vedic literature in respect of: (a) Spread of Vedic Civilization to many New Regions. (b) Role of Iron in later Vedic Economy.
Mention briefly the rituals and sacrifices of the later Vedic Aryans?
What is the message of the Bhagavad Gita?