# Producerâ€™s equilibrium

A producer will be in equilibrium, if two conditions are fulfilled. They are:
• ÂƒAn Iso-Quant curve should be tangent to Iso-Cost curve at a particular point (point E in the diagram)
• ÂƒAt that point the marginal rate of technical substitution between two factors should be equal.
This can be represented in the following diagram: