Question
Explain producer’s equilibrium with the help of a diagram.
✓
Answer
A producer is in equilibrium at that level of output at which the difference between Total Revenue and Total Cost is maximum. In the diagram, OQ is the equilibrium output at which total profit equals RC = RQ – CQ.Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
More "2 Marks Question" from The theory of the firm under perfect competition→The theory of the firm under perfect competition — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→
Similar questions
In order to encourage tourism in Goa, Indian Airlines reduces the air fare to Goa. How will it affect market demand curve for air travel to Goa?
What are the main forms of market?
Giving reason comment on the shape of Production Possibilities curve based on thefollowing schedule:
| Good X (units) | Good Y (units) |
| 0 | 10 |
| 1 | 9 |
| 2 | 7 |
| 3 | 4 |
| 4 | 0 |
Explain the problem of ‘for whom to produce’.
Explain the impact of rise in exchange rate on national income.
The given set of prices which is used for finding out real per capita income, should change frequently. Why?
Can GDP be greater than GNP or not?
Explain any two sources of restricted entry under monopoly.
Increase in money supply is an effective measure to control economic depression, but it creates the burden of borrowing on economy. Explain any two measures by which economic depression can be controlled even in the situation of increase in money supply.
The elasticity of demand of X is (-)1.25. Its price falls for ₹ 10 to ₹ 8 per unit. Calculate the percentage change in its demand.