I need help in chapter producer …

Producer equilibrium is a point wherein the producer is getting maximum profit The conditions of producer equilibrium are: 1 MC=MR 2 MC should be greater than MR after equilibrium for example UNDER PERFECT COMPETITION (Price is same at all level of output) MC MR 8 3 6 3 5 3 3 3 4 3 So in the above example producer will be in equilibrium by producing 4 units of output as there both the conditions are satisfied. UNDER IMPERFECT MARKET( price falls with rise in output) Q P TR MR MC 1 8 8 - 8 2 7 14 6 6 3 6 18 4 4 4 5 20 2 5 5 4 20 0 9 Here producer will be in equilibrium at 3 rd unit of output as there both the conditions are satisfied.

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