The market demand for a type of carpet has been estimated as P = 400 25Q, where P is price (S/yard), and Q is output per time period (thousands of yards per month). There are 200 identical firms in this market, each typical firm has a marginal cost of production MC 100+ 1000g where q is the output of a typical firm. Derive the market supply curve Determine the market equilibrium price and quantity. Determine the producer surplus and consumer surplus. How much net benefit this market generates for the society? Determine how much the typical firm will produce per month at the equilibrium price
The market demand for a type of carpet has been estimated as P = 400 25Q, where P is price (S/yard), and Q is output per time period (thousands of yards per month). There are 200 identical firms in this market, each typical firm has a marginal cost of production MC 100+ 1000g where q is the output of a typical firm. Derive the market supply curve Determine the market equilibrium price and quantity. Determine the producer surplus and consumer surplus. How much net benefit this market generates for the society? Determine how much the typical firm will produce per month at the equilibrium price
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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