E-Egilthnciant Toit.

OM Egilibnint Pduclion.
AR Average Revenue.
MR Maginal Revenue

The firut wdex perloed competitin has Cone

to eguilibrinn because de o conitions haue
been fullilled viz.,
i) MR = NIC Pice
ü) NC wwe uts dhe MR cowe fcm below
and at the paint of equtlibrim MC b
above MR

EquilibrLwn dteuined wden penfect conpetiic

(oreitin uith puaft

Prte
ato
coil

yice

cuttut
 slcls
PEFH betueen
costaveop MRMCad The
quilibriun
coitiens
|Aiqwdrussith henal
Becaue
pefls
unil
T
fecducedsanld
the eguilibaiuvt
Ceweto
Fultiplid y
coltlu ,
iye to
egilibnis
Qulput at
MC
(pnice
aueageud
idiales
PEFH ongleTheucl povl

wkent
 Ea,MDMC awd Ahu tpntihus
at
eprentod by tu nectagle
vliny a Aos the prevniling pie
HEaE, Pa Th, lecawe
thu uauket

-ttuongh all lovel q even

Ma wbil
pen cost hn wil
tolcl los ahll
60 he
fipne). B.! il
|E1
poatin o! tte he
mininun
(shcled that hç
be cudoutood fm eithen
loss Jo
Ahe aulpat o caeapanding paunts
reduces betuesn the
|-tle cltcne the peice
and
the Ac eve
at the eguilibiun
become larqn conditiin uoheu
loses. whee thu
qeeater aimwn pcfit
positin denotes
the eithen
makiny
mirimum hoss.
nuwing to equilibnaan
The fos
fin has
Lonal prolt.
topeltue liut the sleot
(Ome to
the
pucfits, ar los depcnding
rerival
halkket
price
n eaeilib n
i hot
pericd the Trdstvy to enter,deenceed
and ncuw
mae coinuncaite
pofit to poduce
the 1n the lot
be posble cnly
But tis ccill
en.