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Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost4 Marks
Question
Explain the conditions of producer’s equilibrium with the help of a numerical example.
✓

Answer

The conditions are:
  1. MC = MR.
  2. MC > MR after equilibrium.
Output MC MR
(units) (Rs.) (Rs.)
1 12 10
2 10 10
3 9 10
4 10 10
5 12 10
4 units is the equilibrium output at which both the conditions are satisfied.

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