From the following information about a firm, find the firm'* equilibrium output in terms of Marginal Cost and Marginal Revenue. Give reasons. Also find profit at this output.
| Output (Units) | Total Revenue (In Rs.) | Total Cost (In Rs.) | | 12345 | 612182430 | 713172331 |
The producer in equilibrium at 4 units of output.
Reason: At this level of output the conditions of producer’* equilibrium given below are satisfied:
(i) MC = MR
(ii) MC > MR after equilibrium
Profit π = TR – TC
= 24-23= Rs.1
