Producer’s Equilibrium or Optimisation (With Diagram)
In this article we will discuss about Producer’s Equilibrium or Optimisation. Producer’s equilibrium or optimisation occurs when he earns maximum profit with optimal combination of factors. A profit maximisation firm faces two choices of optimal combination of factors (inputs). 1. To minimise its cost for a given output; and 2. To maximise its output for a given cost. Thus the [...]