Question

What are the two conditions for equilibrium of a firm by MC = MR method?

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:

1. national income refers to the two condition for equilibrium of the firm by MR method