# Sandeep Garg Macroeconomics Class 12: Chapter 7 Revenue

Sandeep Garg Class 12 Microeconomics Solutions Chapter 8 Producerâ€™s Equilibrium is explained by the expert Economics teachers from the latest edition of Sandeep Garg Microeconomics Class 12 textbook solutions. We at BYJUâ€™S provide Sandeep Garg Economics Class 12 Solutions to give comprehensive insight about the subject to the students. These insights help as a priceless benefit to students while completing their homework or while studying for their exams.

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## Sandeep Garg Solutions Class 12 – Chapter 8 – Part A – Microeconomics

Question 1

What is a Profit?

Ans: Profit refers to the excess of receipts from the sale of goods over the expenditure incurred on producing them.

Question 2

Define Producerâ€™s Equilibrium.

Ans: Producerâ€™s Equilibrium refers to that price and output combination, which brings maximum profit to the producer and profit declines as more is produced.

Question 3

On the basis of the data given below, determine the level of output at which the producer will be in equilibrium. Use the marginal cost-marginal revenue approach.

 Output (Units) 1 2 3 4 5 6 7 Average Revenue (â‚¹) 7 7 7 7 7 7 7 Total Cost (â‚¹) 8 15 22 28 33 40 48

Solution:

 Output (Q) (in units) AR (â‚¹) TC (â‚¹) MC (â‚¹) $_{MC_{n}} = _{TC_{n}}- _{TC_{n-1}}$ MR (â‚¹) $_{MR_{n}} = _{TR_{n}}- _{TR_{n-1}}$ 1 7 8 8 7 2 7 15 7 7 3 7 22 7 7 4 7 28 6 7 5 7 33 5 7 6 7 40 7 7 7 7 48 8 7

Question 4

What are the two methods for determination of Producerâ€™s Equilibrium?

Ans: The two methods for determination of producer’s equilibrium are :

• Total Revenue and Total Cost Approach (TR – TC Approach)
• Marginal Revenue and Marginal Cost Approach (MR – MC Approach)

Question 5

What are the conditions needed for the Producerâ€™s Equilibrium?

Ans: The conditions needed for the producer’s equilibrium are :

• MC=MR
• MC is greater than MR after the MC = MR output level

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