Suppose there is a perfectly competitive industry where all the firms are identical with identical cost curves. Furthermore, suppose that a representative firm's total cost is given by the equation TC = 100+ q² + q where q is the quantity of output produced by the firm. You also know that the market demand for this product is given by the equation P = 1000 - 2Q where Q is the market quantity. In addition you are told that the market supply curve is given by the equation P = 100+ Q. What is the equilibrium price in this market given this information? a) What is the equilibrium price in this market given this information b) What is the firm's profit-maximizing level of production?

Suppose there is a perfectly competitive industry where all the firms are identical with identical cost curves. Furthermore, suppose that a representative firm's total cost is given by the equation TC = 100+ q² + q where q is the quantity of output produced by the firm. You also know that the market demand for this product is given by the equation P = 1000 - 2Q where Q is the market quantity. In addition you are told that the market supply curve is given by the equation P = 100+ Q. What is the equilibrium price in this market given this information? a) What is the equilibrium price in this market given this information b) What is the firm's profit-maximizing level of production?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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