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MICROECONOMICS CH : 10 PRODUCER'S EQUILIBRIUM — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMICROECONOMICS CH : 10 PRODUCER'S EQUILIBRIUM4 Marks
Question
Find producer's equilibrium, from the following. Give logical reason.
Quantity Sold (Units)Total Revenue (₹)Total Cost (TC) (₹)
51518
62022
72526
83027
93532
104038
✓

Answer

Quantity Sold (Units)Total Revenue (TR) (₹)Total Cost (TC) (₹)Marginal Revenue (MR) (₹)Marginal Cost (MC) (₹)Profit
(π = TR - TC)
(₹)
51518--- 3
6202254- 2
7252654- 1
83027513
93532553
104038562
Producer is in equilibrium at 9th unit of output.
Reason: At output levels 8th and 9th unit, the difference between TR and TC, ie., profit is maximum, which is equal to 3 in both the cases. But the producer is in equilibrium at 9th unit only where MR= MC (=5), and MC is rising.
Producer's equilibrium is struck when output level is 9 units.

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