Question

what is producer equilibrium explain with diagram? ​

Answer 1

HEY MATE________________

A producer is said to be in equilibrium when he maximises his profit or minimises his losses.

There are two conditions of producer's equilibrium:

(i) MC= MR

(ii) MC is greater than MR after equilibrium

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Answer 2

In this article we will discuss about Producer’s Equilibrium or Optimisation.

Producer’s equilibrium or optimisation occurs when he earns maximum profit with optimal combination of factors. A profit maximisation firm faces two choices of optimal combination of factors (inputs).

1. To minimise its cost for a given output; and