Question

Do uh think it is rational for a producer to strike equilibrium when MC is rising, not when falling? explain ​

Answer 1

Answer:

Yes , it is rational to strike equilibrium when MC is rising, not when it is falling. When MC is falling cost of producing additional unit tends to decline.

Answer 2

Explanation:

t is only when MC is rising that a producer would strike his equilibrium. Thus, equilibrium will be struck when MR = MC = 12, and MC is rising. The producer will maximize profits when 10 units of output are produced..