Page 1 - H. A Producer's equilibrium
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SAI INTERNATIONAL SCHOOL
ECONOMICS
Class-XI
[MICRO ECONOMICS]
CHAPTER -8
PRDUCERS EQUILIBRIUM
Module-72
TOPIC:
---MC & MR approach of producer’s equilibrium
underimperfect competition market
SHORT NOTES.
1. Profit: Profit refers to the excess of revenue over cost.
2. Producer’s equilibrium: A producer is said to be in equilibrium when he
produces that level of output at which his profits are maximum. Producer’s
equilibrium is also known as profit maximisation situation
Producer’s equilibrium when price fall with a rise in output under MR/MC
approach is determined where
(a) MR = MC
(b) MC must be rising When price falls with the rise in output, MR curve slope
downwards. Let us understand this with the help of following table:
