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Producer's equilibrium - class-XII
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As per Total Revenue less Total Cost (TR - TC) approach of looking at the producer's equilibrium, which of the following condition is necessary for producer's equilibrium?
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A
Both (A) and (B)
💡 Explanation:
In the TR-TC approach, a producer is in equilibrium when profit (TR-TC) is maximized. This occurs when the gap between TR and TC is at its peak, and producing one more unit would result in a decrease in profit.