Question
“MC should be rising at the point of Producer's Equilibrium". Comment.
✓
Answer
- The given statement is correct.
- If MC is falling at the point of equilibrium, it means that it is possible to add to profits by producing more.
- So, MC should be rising at the point of producer's equilibrium.
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
Similar questions
A producer starts a business by investing his own savings and hiring the labour. Identify implicit and explicit costs from this information. Explain.
“Supply curve is the rising portion of marginal cost curve over and above the minimum of Average Variable cost curve". Do you agree? Support your answer with valid reason.
Distinguish between a normal good and an inferior good. Give example in each case.
With the same amount of resources, a farmer can feed the following combinations of goats and cows:
With the given options, what is the opportunity cost of the farmer feeding one cow?
| Option | Goats | Cows |
| I | 188 | 64 |
| II | 170 | 70 |
What is the relation between market price and average revenue of a pricetaking firm?
Why are the firms said to be interdependent in an oligopoly market? Explain.
Explain the implications of the feature 'large number of buyers' in a perfectly competitive market.
Can an Indifference Curve be concave to the origin, if so then when?
Draw Average Revenue and Marginal Revenue curves under monopolistic competition.
From the following table, find out the level of output at which the producer will be in equilibrium. Give reasons for your answer.
|
Output (units)
|
Marginal Revenue (Rs.)
|
Marginal Cost (Rs.)
|
|
1
|
8
|
10
|
|
2
|
8
|
8
|
|
3
|
8
|
7
|
|
4
|
8
|
8
|
|
5
|
8
|
9
|