Page 4 - H. A Producer's equilibrium
P. 4
6 24 139
7 24 165
3. From the following schedule find out the level of output at which the
producer is in equilibrium using MC and MR approach. Give reasons for
your answer.
Price per unit Output(units) Total cost(Rs)
(Rs)
8 1 6
7 2 11
6 3 15
5 4 18
4 5 23
4. Determine producer’s equilibrium from the following data through MC-
MR approach. Give the reasons for your answer.
Outputs(units) 1 2 3 4 5
AR(Rs) 12 11 10 9 8
AC(Rs) 4 5 6 7 8
5. Given below is the cost schedule of a product produced by a firm. The
market price per unit of the product at all levels of output is Rs 12.Using
marginal cost and marginal revenue approach; find out the level of
equilibrium output. Give reasons for your answer.
Output(units) 1 2 3 4 5 6
Average 12 11 10 10 10.4 11
Cost(Rs)
