Question

What is meant by producer’s equilibrium?

Answer 1

Answer:

a state of balance , especially between force or influence that are working in positive way is called equilibrium

Answer 2

The producer's equilibrium means the maximum profit earned by the producer through the price and output of the product.

What are the methods to determine the producer's equilibrium?

TR - TC approach:

• The difference between TR and TC is used to determine producer equilibrium
• The profit decreases in this method to determine the producer's equilibrium

MR - MC approach:

• We use this method when the price of the product is constant
• MR is the additional price that is earned above total revenue when one unit of a product is produced