Question

How do we find a producers ‘equilibrium?

Answer 1

Producer's Equilibrium is determined at OM level of output corresponding to point E as at this point:

(i) MC = MR; and

(ii) MC is greater than MR after MC = MR output level.

2. MC is greater than MR after MC = MR output level. So, the producer is at equilibrium at OM units of output.

Answer 2

Answer:

Producer's Equilibrium is determined at OM level of output corresponding to point E as at this point: (i) MC = MR; and (ii) MC is greater than MR after MC = MR output level. 2. MC is greater than MR after MC = MR output level. So, the producer is at equilibrium at OM units of output.