Question

What are the conditions for the producer’s equilibrium?

Answer 1

Explanation:

Producer's equilibrium is often explained in terms of marginal revenue (MR) and marginal cost (MC) of production. Profit is maximized (or a producer strikes his equilibrium) when two conditions are satisfied –

(i) MR = MC, and

(ii) MC is rising (or MC is greater than MR beyond the point of equilibrium output).

Answer 2

Answer:

during the natural calamity Total production of foodgrains decreases by shortage of food with prices goes up at high prices...