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The condition for producer equilibrium is
TR=TVC
MC=MR
TC=TSC
None of this above
- Option 1: TR = TVC
- TR (Total Revenue) is not equal to TVC (Total Variable Cost) for producer equilibrium. These concepts aren't directly related.
- Option 2: MC = MR
- MC (Marginal Cost) should equal MR (Marginal Revenue) for producer equilibrium.
- When MC equals MR, profit is maximized as producing an additional unit neither increases profit nor incurs loss.
- Option 3: TC = TSC
- TC (Total Cost) equals TSC (Total Social Cost) is generally unrelated to producer equilibrium directly.
- Option 4: None of this above
- Incorrect since Option 2 is generally accepted in economic theory.
By: santosh ProfileResourcesReport error
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