Can any explain producer equlibrium and market equlibrium
Answers
Producer equlibrium and market equlibrium:
Producer's Equilibrium: Equilibrium refers to a state of rest when no change is required. A firm (producer) is said to be in equilibrium when it has no inclination to expand or to contract its output. This state either reflects maximum profits or minimum losses.
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 maximisation or cost minimisation (under MR and MC approach).
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Market equlibrium :-
It is the market state where the supply in the market is equal to the demand in the market .The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market...
Producer equilibrium:-
It refers to a state of rest when no change is required .A producer is said to be in equilibrium when it has no inclination to expand or to contract it's output .This state either reflects maximum profits or minimum loses.