Using marginal cost and marginal revenue approach, find out the level of output at which producer will be in equilibrium. Give reasons for your answer.

Output (Units) 1 2 3 4 5 6

Average Revenue (Rs.) 20 20 20 20 20 20

Total Cost (Rs.) 22 42 60 76 96 120

12th Class Economics Solved Paper - Economics 2017 Delhi Set-III

Using marginal cost and marginal revenue approach, find out the level of output at which producer will be in equilibrium. Give reasons for your answer.

Output (Units)

Average Revenue (Rs.)

Total Cost (Rs.)

Answer:

Output AC MC MC AR

1 12 12 12 12

2 11 12 10 12

3 10 12 8 12

4 10 12 10 12

5 10.4 12 10.4 12

6 11 12 16.4 12