Lasguns are produced by identical firms in a perfectly compettitve market. There are 21 firms in the market. Each firm's Total cost fucntion is TC = 206+2q+q^2 and Marginal Cost frunction is MC = 2+2q. Market demand is Q = 334 - P. What is the short-run equilibrium market price?

Lasguns are produced by identical firms in a perfectly compettitve market. There are 21 firms in the market. Each firm's Total cost fucntion is TC = 206+2q+q^2 and Marginal Cost frunction is MC = 2+2q. Market demand is Q = 334 - P. What is the short-run equilibrium market price?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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What is the short-run equilibrium market price?

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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