Question

Explain the equilibrium of firm and industry under perfect competition.

Answer 1

A firm is said to be in equilibrium when it has no incentive either to expand or to contract its output. A firm would not like to change its level of output only when it is earning maximum money profits. Hence, making a maximum profit or incurring a minimum loss is an important condition of a firm's equilibrium.......

Answer 2

here is the figure

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