Define Producers Equilibrium

Producer’s Equilibrium: A producer (or a firm) is said to be in equilibrium whenever it earns maximum gains. Profit maximization of a firm signifies maximizing the difference between total cost and total revenue. Whenever the gains of the firm are maximum, the firm is in equilibrium state. Firm achieves equilibrium position, that is maximizes gains at the level of output where a) MR = MC (b) MC is rising.

View Complete Question

Related Questions in Microeconomics

Q : Increases profits by marginal revenue

Assuming which marginal revenue equals $4 and marginal cost equals $5, a monopolist could raise profits by: (w) lowering both price and output. (x) increasing both price and output. (y) increasing price and decreasing output. (z) decr

Q : Monopolistic competition in the long

This figure demonstrates a: (w) long run equilibrium for a firm in a perfectly competitive industry. (x) short run equilibrium for a natural monopoly. (y) short run circumstances for a monopolistically-competitive firm into long run equilibrium. (z) cartel which maxim

Q : Types of measurement in Metrics Types

Types of measurement in Metrics: A) Nominal: a nominal scale assigns items to a category. For example, the category may be a simple "yes" or "no." In the case of a family, a nominal scale

Q : Total revenue at level of sales and

HoloIMAGine has patented a holographic technology which makes 3-D photography obtainable to consumers. The level of sales and production at that HoloIMAGine would take in its greatest probable total revenue is: (i) output q3

Q : Firms demand for labor Assume that the

Assume that the international auto industry has become monopolistically competitive and you run a small automaker. The events which would not directly influence your firm’s demand for labor comprise: (i) Sales of your company’s most admired car unexpectedl

Q : Relative profitability and efficiencies

From around 1890 until 1970 year, the “structure-conduct-performance paradigm” dominated theories concerning how firms behave in various types of markets. Here the word “performance” in this context consider to things as: (i) d

Q : Labor-Leisure Tradeoffs When leisure is

When leisure is a normal good, then the demand for leisure: (i) Differs directly with the income. (ii) Has declined sharply as World War II. (iii) Is positively associated to the average age of population. (iii) Shifts left-ward as an outcome of technological advances

Q : Quantity demanded vary inversely I have

I have a problem in economics on Quantity demanded vary inversely. Please help me in the following question. The law of demand defines that price and: (1) Quantity demanded differ directly. (2) Quantity demanded differs inversely. (3) Demand differs d

Q : Problem regarding market demand curve

Hey friends I need your help for illustrated figure in below where for cranberries, the market demand curve is: (i) A. (ii) B. (iii) F. (iv) J. (v) E. 1579_</span></p>
</div>

</li>

</td>
</tr><tr>
<td>

<li>
<div class=

Q : Possible elasticity of brain power of TV

When doubling your viewing of soap operas to sixteen hours per week causes your IQ score to reduce from a genius level of 140 to a sluggish 70, your TV elasticity of brain power is possibly: (i) -1.0. (ii) +1.0. (iii) -2.0. (iv) 2.0. (v) -0.5.

Discover Q & A

Leading Solution Library

Avail More Than 1423576 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1948751
Asked

3,689

Active Tutors

1423576

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment