What is Marginal Revenue and Marginal Cost approach? – InterviewSolution

1.	What is Marginal Revenue and Marginal Cost approach?
Answer» According to marginal revenue and marginal cost approach, a producer will be in equilibrium when two conditions are fulfilled i.e., (i) MC=MR and (ii) MC must cut MR from below. This is a better method to analyse the equilibrium point of a firm, since both optimum production and total profit can be easily determined by it.

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