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MR-MC approach of producer equilibrium

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MR-MC approach of producer equilibrium

Posted by Anukul Bansal 6 years, 9 months ago

CBSE > Class 11 > Economics

1 answers

Nayaab Baghdadi 6 years, 9 months ago

Two following conditions should be satisfied:- 1. MC = MR This is satisfied at 2 points in the schedule. 2. MC > MR after MC = MR This is satisfied only at one point as at the first point, the MC curve dips but at the second point it increases. Hence, the second point will be the point of equilibrium as if the consumer goes on producing after this point he will gain losses. MR MC Approach is also known as Producer's Equilibrium. ( graph can be seen from any guide)

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