|1) Firm is an unit of an industry.||1) Industry is a group of firm which are producing a homogeneous products.
|2) Firm is in equilibrium when it has not tendency to increase / decrease its output||2) An industry is in equilibrium when all the firms are operating and no new firm has to enter or an old firm to leave the industry.|
|3) Condition: A firm is in equilibrium when its marginal cost is equal to marginal revenue and at the point of equilibrium, MC curve cut MR curve from below||Industry equilibrium is determined by conditions of demand and supply. The industry will be in the condition of equilibrium when All firms are in equilibrium, no new firm enter and no old firm leave the industry.
|4) Period: From the point of view of time, firm can be equilibrium both in short and long runs if MC = MR.||In industry will be in the position of equilibrium in the long run because all the possible adjustments can be made. Long run equilibrium of an industry is more stable.|
Latest posts by BMS Team (see all)
- Meterdown Annual Festival is back with its 7th edition – Starts today! - January 16, 2020
- Tybms sem 6 results 2019 declared on 19th June 2019 - June 19, 2019
- TYBMS Sem 6 Results 2019 Update from BMS khabri! - June 15, 2019