Question

Explain producer's equilibrium with the help of a diagram.

Answer 1

Heya....

See here for your answer....

Producer equilibrium is the point of maximum profit to the producer..

It can be occur when these two conditions coincide at a point..

" MR = MC
Means the total revenue getting by producer covers it's all the cost of production...

" MC must be rising at the point of equilibrium...
Means the law of variable proportion ID holding the marginal production and thus is the minimum cost of production..

For diagrammatic presentation see the above attachment...

The yellow doted point is equilibrium point....

Thank you...