Question

Find producer's equilibrium from the following table given below:

Quantity Sold (Units)	Total Revenue (Rs.)	Marginal Cost (Rs.)
1	$9$	$15$
2	$18$	$8$
3	$27$	$9$
4	$36$	$10$
5	$45$	$11$

Answer 1

Quantity Sold (Units)	Total Revenue (Rs.)	Marginal Cost (Rs.)
1	$9$	$15$
2	$18$	$8$
3	$27$	$9$
4	$36$	$10$
5	$45$	$11$

The producer will strike his equilibrium when 3 units of output are produced. Because, it is here that:

(i) MR = MC, and

(ii) MC is rising.