Page 2 - H. A Producer's equilibrium

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FORMULAES

1. TC=AC x OUTPUT
2. TR=AR(PRICE) x OUTPUT
3. PROFIT=TR-TC
4. MR=TR n-TR n-1
5. MC=TC n-TC n-1

PRODUCER EQUILIBRIUM CONDITION

1. MR=MC
2. MC should be rising at equilibrium output OR MC curve should cut the
MR curve from below.