Equilibrium of a Firm

Equilibrium is a situation from where firm a firm does not want to deviate. Generally this happens when the firm is earning maximum profit since it is the most advantageous position, therefore the firm does not want to change its position. Thus it is the state of equilibrium. The equilibrium of a firm can be […]

Importance or Significance of Revenue Curves

The marginal revenue curve helps in the determination of firm’s equilibrium. It is the point of intersection between MR and MC curves which determines the point of equilibrium of a firm. Besides, to calculate the profit and loss of a firm, AR curve is essential. Thus AR and MR curves play an important role in […]