On the basis of the following data, locate the equilibrium position of a competitive producer by comparing MR and MC. Give reasons for your answer.

$\begin{matrix} Output(in Units) & Price (Rs.) & MC (Rs.) 3 & 10 & 7 4 & 10 & 8 5 & 10 & 9 6 & 10 & 10 7 & 10 & 11 \end{matrix}$

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Solution

A competitive producer will be in equilibrium when he produces 6 units of output because at this level of output, the two conditions of producer's equilibrium, i.e.,

(i) MR=MC and

(ii) MC>MR beyond this level output

are fulfilled.

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On the basis of the following data, locate the equilibrium position of a competitive producer by comparing MR and MC. Give reasons for your answer. Output(in Units)Price (Rs.)MC (Rs.) 3 10 7 4 10 8 5 10 9 6 10 10 7 10 11

A competitive producer will be in equilibrium when he produces 6 units of output because at this level of output, the two conditions of producer's equilibrium, i.e., (i) MR=MC and (ii) MC>MR beyond this level output are fulfilled.

On the basis of the following data, locate the equilibrium position of a competitive producer by comparing MR and MC. Give reasons for your answer.

$\begin{matrix} Output(in Units) & Price (Rs.) & MC (Rs.) 3 & 10 & 7 4 & 10 & 8 5 & 10 & 9 6 & 10 & 10 7 & 10 & 11 \end{matrix}$

A competitive producer will be in equilibrium when he produces 6 units of output because at this level of output, the two conditions of producer's equilibrium, i.e.,

(i) MR=MC and

(ii) MC>MR beyond this level output

are fulfilled.