Download App

Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost1 Mark
Question
When price is constant for a firm, producer's equilibrium is struck only when commodity price coincides with MC and MC is rising. Do you agree?
✓

Answer

Yes, it is true. In a situation, when price is constant, AR = MR. So, the conditions of producer's equilibrium may be written as:
  1. Price = MC
  2. MC should be rising.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "1 Marks Question" from Production and cost→Production and cost — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

State two conditions of a producer's equilibrium for a competitive firm.
→
Draw TC, TFC and TVC curves in a single diagram.
→
What is the meaning of the central problem ‘how to produce'?
→
Demand for product X is perfectly elastic. What will be the change in price if demand rises from 50 per unit to 70 per unit?
→
In which market form, is the product unique?
→
What do you mean by price ceiling?
→
Why does an economic problem arise?
OR
What gives rise to an economic problem?

OR
Why does the problem of choice arise?
→
What causes a movement along the supply curve of a good?
→
Define ordinal utility.
→
Why is production possibility curve also called opportunity cost curve?
→