explain the equilibrium of firm
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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. ... Thus, the total super-normal profits of a firm will be equal to PLMN.
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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. ... Thus, the total super-normal profits of a firm will be equal to PLMN.
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