Find the market equilibrium point. Explain what will happen if the company decides to sell a pen at 8$. 32- For a pen company, the total cost of producing a pen is given byC(x) = −x³ + 8x² - 4x − 5, and the revenue function is givenby R(x) = −x³ + 7x². The demand function for this product inthe market is given by D(x) = −2x² + 8x and thecorresponding supply function is given by S(x) = x²-x. Thefactory does not produce more than 15 pens in this process.a) What is the profit if 5 pens are sold?b) How many pens must be sold for the company to break even?c) Find the market equilibrium point. Explain what will happenif the company decides to sell a pen at 8$.

The state of balance in a market where the quantity demanded (D(x)) by buyers matches the quantity…

Answered: c) Find the market equilibrium point.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Find the market equilibrium point. Explain what will happen if the company decides to sell a pen at 8$.

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2- For a pen company, the total cost of producing a pen is given by
C(x) = −x³ + 8x² - 4x − 5, and the revenue function is given
by R(x) = −x³ + 7x². The demand function for this product in
the market is given by D(x) = −2x² + 8x and the
corresponding supply function is given by S(x) = x²-x. The
factory does not produce more than 15 pens in this process.
a) What is the profit if 5 pens are sold?
b) How many pens must be sold for the company to break even?
c) Find the market equilibrium point. Explain what will happen
if the company decides to sell a pen at 8$.

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

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