Economy, asked by khatrimanoj3045, 1 year ago

Explain the equilibrium of a firm by marginal revenue and marginal cost approach with the help of diagram.

Answers

Answered by musakhiangte

0

Explanation:

Hence, 'MR' Marginal Revenue curve and 'MC' Marginal Cost Curve intersect each other at point E, which is known as Equilibrium point. OQ units of output are produced in a firm, thus OQ is the Equilibrium Output. So, The profit maximizing output is OQ. The firm earned supernormal and abnormal profit equal area PABE.

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