Equilibrium Of Firm Under Monopoly In Short Run

1. TR , TC Approach:-
                                     According  to this approach the firm is in Equilibrium position at the quantity where the difference between TR & TC is maximum.

=>> At B* slope of TR =  slope of TC.

At Point B & E the difference between  TR & TC is maximum and firms in Equilibrium position.
                                                 At this point profit is maximum
                                                        MR = MC

2. MR , MC Approach:-
                                      According to this approach the firm is in Equilibrium position where the MC and MR of firm are equal, and at that point profit is maximum.

Where MC = MR at that quantity the price can be determined by firm itself and at that point average revenue decides the price of the product.

=>> In Monopoly firm is a price setter under MR , MC approach.