On the basis of the given schedule, state at which level of output will the firm be at equilibrium and - Economics - Market Equilibrium

Question

On the basis of the given schedule, state at which level of output
will the firm be at equilibrium and why?

Ishi · Accepted Answer

Dear Student

Output
Price (TR)
Total cost (TC)
MC= TCn - TCn-1
MR= TRn - TRn-1

0
10
10
-
10

1
10
12
2
10

2
10
24
12
10

3
10
40
16
10

4
10
50
10
10

5
10
56
6
10

6
10
57
1
10

The equilibirium achieve at 4 units because this level satisfied
both the condition of producer's equilibirium (i) MC is equal to MR
(ii)MC becomes greater than MR after this level of output

Regards

Output	Price (TR)	Total cost (TC)	MC= TC_n - TC_n-1	MR= TR_n - TR_n-1
0	10	10	-	10
1	10	12	2	10
2	10	24	12	10
3	10	40	16	10
4	10	50	10	10
5	10	56	6	10
6	10	57	1	10

On the basis of the given schedule, state at which level of output will the firm be at equilibrium and why?