Question

3. A producer will be in equilibrium when:
A. MC = MR
B. MR > MC
C. MC > MR
D: MC = MR and MC > MR beyond MC = MR​

Answer 1

Explanation:

A producer strikes his equilibrium at that level of output, where profit is maximised. It is only when

(a) MR = MC,

(b) MC is rising, these two conditions are satisfied, then a producer will reach the point of his equilibrium and maximising his profit.