Question

Derive and explain the equilibrium condition for profit maximinzing

Answer 1

Answer:

The goal of the firm is to maximise profit. Therefore, the firm would be in equilibrium only when it achieves profit maximisation. The total revenue (TR) function of the firm gives its total revenue as a function of the quantity of output sold (q), i.e., TR = TR(q).

The total cost (TC) function of the firm, on the other hand, gives us total cost as a function of the quantity of output produced (q), i.e., TC = TC(q).

Explanation:

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Answer 2

Answer:

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