Question

The firm will be in equilibrium when ​

Answer 1

Answer:

A firm is in equilibrium when it's marginal cost is equal to marginal revenue (MC-MR) and marginal costs curve cuts marginal revenue curve from below. A firm in equilibrium earns super normal profit when average revenue ( price per unit) determined by the industry is more than it's average cost.

Answer 2

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.