Question

B. Information & Concept wu.
1. What is meant by producer's equilibrium?
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Answer 1

Answer:

1. Equilibrium refers to a state of rest when no change is required.
2. A firm (producer) is said to be in equilibrium when it has no inclination to expand or to contract its output.
3. This state either reflects maximum profits or minimum losses

Answer 2

Producer's equilibrium also refers to the optimal level of production when the producer or the firm does not require to either expand or contract production level.

Explanation:

As mentioned,producer's equilibrium provides the highest satisfaction to the producers as it refers to a position in production level where the producer doesn't need to modify the production level.It is the position of the production level where the producer's profit or Total Revenue(TR)-Total Cost(TC) is maximized and any further modification of the production level would reduce the profit level.Therefore,the producers don't have any incentive to shift from this position.Producer's equilibrium can also occur at the loss minimized position indicating that if any firm/company is experiencing loss(TR<TC),the level of loss is minimized and it is happy to operate at that level of production.