Question

Equilibrium conditions for marginal cost and marginal revenue

Answer 1

when the marginal cost and marginal revenue intersect each other at a point is known as MR MC equilibrium. there are 2 cases of producer's equilibrium through MR-MC approach 1) in the case of perfect competition and 2) in the case of imperfect competition

Answer 2

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A firm is said to be in equilibrium when its marginal cost is equal to marginal revenue and marginal cost curve cuts the marginal revenue curve from below. A firm in equilibrium enjoys supernormal profits if average revenue exceeds marginal cost.