A firm is said to be in equilibrium when it has no tendency either to increase or to contract its output. A firm is in equilibrium when it is earning maximum profit. Conditions of Equilibrium: A firm would be in equilibrium when the following two conditions are fulfilled: 1. MC = MR. 2. MC curve […]
Equilibrium of a Firm under Perfect Competition | Microeconomics
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Supply Curve of a Firm (with diagram)
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The factor supply can be defined as the quantity of a factor which all the suppliers in an economy will supply at different prices to the producers of goods and services. In case of a product, the law of supply explains that more the product price more will be its supply or, a direct relationship […]
Cost Types: 8 Main Types of Cost | Microeconomics
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The following points highlight the eight main types of cost. The types are: 1. Money Cost 2. Real Cost 3. Opportunity Cost 4. Direct Cost and Indirect Cost 5. Incremental Costs and Sunk Costs 6. Replacement Costs and Historical Costs 7. Fixed Costs and Variable Costs 8. Short Run Costs and Long Run Costs. Type […]