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No, along with MC = MR, another necessary condition is that MC should be rising.

No, it cannot be its equilibrium output because the MC exceeds the MR. The firm is running a loss.

The producer is in equilibrium producing 4 units because this meets both the conditions of equilibrium.

(i) MC = MR

(ii) MC > MR after equilibrium.

There are two conditions of producer's equilibrium:

(i) MC = MR

(ii) MC is greater than MR after equilibrium.

The condition are fulfilled at 4 units of output.

Explanation:

(i) So long as MC is less than MR, it is profitable for the producer to go on producing more because it adds to its profits. He stops producing more when MC becomes equal to MR.

(ii) When MC is greater than MR after equilibrium, it means producing more will lead to decline in profit.

Producer's equilibrium refers to a situation, where a producer is producing that level of output, at which its profits are maximum. In other words, it is a situation of profit maximization.

Following are the two conditions of producer's equilibrium:

(i) MR = MC

(ii) MC must be rising at the point of equilibrium or MC curve must cut MR curve from below:

These conditions are satisfied when 4 units of output are produced in the given schedule.

Two conditions are:

(i) MC = MR, and

(ii) MC is rising.

Producers Equilibrium-A producer (firm) is said to be in equilibrium when the firm is producing that quantity of output which gives the firm maximum profit.

For a firm to be in equilibrium two conditions must be fulfiIled. First and the necessary condition is that firm's marginal cost equals marginal revenue. Second, along with the first condition is that MC must be greater than MR beyond the level of output at which MC = MR. Therefore, fulfillment of the first condition alone does not ensure maximum profits. It is possible that MC = MR condition may be fulfilled at more than one output level but only that output level beyond which MC > MR is the maximum profits output level.

The equilibrium is at 4 units of output.

Reasons:

(1) At this Level of output MR = MC

(2) MC > MR after equilibrium output.

There are two conditions of producer's equilibrium:

(i) MC = MR

(ii) MC is greater than MR after equilibrium.

The condition are fulfilled at 4 units of output.

Explanation:

(i) So long as MC is less than MR, it is profitable for the producer to go on producing more because it adds to its profits. He stops producing more when MC becomes equal to MR.

(ii) When MC is greater than MR after equilibrium, it means producing more will lead to decline in profit.

If Such condition is not fulfilled, the optimum point of production hasn't been reached eg. if MC increases while the MR is stable, this means that with every increase in production, the cost of production is increasing. It means the firm is undertaking higher cost of production which it won't be able to cover by the price it will get after selling the product. So obviously this isn't the equilibrium point. On the other hand, when the MC is less than MR, this means that with every increase in production, the cost will fall. A businessman will tend to increase the production till the MC becon.res equal to MR. When MC equals MR, there is no tendency for the production no either increase or decrease. Hence it is the equilibrium point.

Producer is said to be in equilibrium when he maximises his profits or minimises his losses.

A Producer is one who produces and/or sells goods and services for the generation of income.