A producer is in equilibrium when

it sells the largest possible outputCorrect answerYour answerits total revenue is at its maximumCorrect answerYour answerits costs are at their lowestCorrect answerYour answerit earns the maximum profit and has no reason to change its outputCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Equilibrium is the output that maximises profit, TR − TC.
Neither the most sales nor the lowest cost on its own is the aim.

Concept: Meaning of producer's equilibrium
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsProducer's equilibrium: MC = MR

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Ten questions from Revenue & Producer's Equilibrium, at your own pace.

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Ten questions from Revenue & Producer's Equilibrium, at your own pace.

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A producer is in equilibrium when

Explanation