Question

why should MC curve be rising in a situation of producer's equilibrium?....please friends solve the question❓

Answer 1

Hello Mate,

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).


Hope this helps you

Answer 2

HERE UR ANSWER.

MC is an additional cost.Sum total of the marginal cost corresponding to different unit of output.

MC tends to rise ,it is because MP tends to fall when there are dimnishing return to a factor.MC is u shaped in accordance with the law of variable proportion..