A firm attains equilibrium when it has no incentive either to expand or to contract its output. A firm would not like to change its level of output only when its total profits are the maximum.
A rational firm will expand output if it can increase its total profits. A firm is in equilibrium position when it is earning maximum profits. At the level of maximum profit, there is a particular output and particular price of the product.
marto answered the question on April 16, 2019 at 13:11
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