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CBSE Class 12-commerce Answered

Find the level of output at which the producer is in equilibrium by using marginal revenue and cost method. Justify the statement. Output Price Total Cost 1 15 12 2 15 21 3 15 29 4 15 36 5 15 45 6 15 60 7 15 76  
Asked by Topperlearning User | 25 Apr, 2016, 02:51: PM
answered-by-expert Expert Answer

 

Output

Price

TC

TR

MR

MC

TR-TC

1

15

12

15

15

12

3

2

15

21

30

15

9

9

3

15

29

45

15

8

16

4

15

36

60

15

7

24

5

15

45

75

15

9

30

6

15

60

90

15

15

30

7

15

76

105

15

16

29

The producer is in equilibrium only at 6th unit of output where MR is equal to MC with the maximum profit.

Answered by | 25 Apr, 2016, 04:51: PM
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