Question

elaborate the implication of the condition of equilibrium of firm

Answer 1

1.profit earn by the firm should be maximum.
2.MR=MC
3.MC cuts MR from below

Answer 2

The implication of the condition of equilibrium of firm:

Equilibrium of firm is taken from science and it is a state of process where the forces which are opposite to each other become equal.

The equilibrium of a firm is achieved when the “existing level of output” is acceptable. When the profit or income is maximum, the industry is said to be in equilibrium.

Equilibrium of a firm should have “marginal cost and marginal revenue” which is maintained at the same level.