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CBSE Class 12-commerce Answered

Why should MC be rising at the point of equilibrium?
Asked by Topperlearning User | 25 Apr, 2016, 02:51: PM
answered-by-expert Expert Answer

When MC is falling, the cost of producing an additional unit of output tends to decrease. Under perfect competition, when price is constant, the difference between the total revenue and total variable cost tends to increase. This happens when the firm’s gross profit tends to increase. But a firm will not increase the output with an increasing gross profit. Therefore, the firm will be able to reach at its equilibrium output only when MC is rising.

Answered by | 25 Apr, 2016, 04:51: PM
CBSE 12-commerce - Microeconomics
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ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Microeconomics
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ANSWERED BY EXPERT ANSWERED BY EXPERT
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ANSWERED BY EXPERT ANSWERED BY EXPERT
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Asked by Topperlearning User | 25 Apr, 2016, 02:51: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 25 Apr, 2016, 02:51: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 25 Apr, 2016, 02:51: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 25 Apr, 2016, 02:51: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 25 Apr, 2016, 02:51: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Microeconomics
Asked by Topperlearning User | 25 Apr, 2016, 02:51: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
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