The market demand for a type of carpet has been estimated as P= 75 – 1.5QWhere P is price ($/yard) and Q is output per time period ( thousands of yards per month). The market supply is expressed as P= 25 + 0.5 Q. a typical competitive firm that markets this type of carpet has a marginal cost of production of MC= 2.5 + 10qDetermine the market equilibrium price for this type of carpet. Also determine the production rate in the market,Determine how much the typical firm will produce per week at the equilibrium price.If all firms had the same cost structure, how many firms would compete at the equilibrium price computed in (a) above?

Given, Market demand= P= 75 – 1.5Q Market Supply= P= 25 + 0.5 Q Cost of Production= MC= 2.5 + 10q

Answered: The market demand for a type of carpet…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

The market demand for a type of carpet has been estimated as

P= 75 – 1.5Q

Where P is price ($/yard) and Q is output per time period ( thousands of yards per month). The market supply is expressed as P= 25 + 0.5 Q. a typical competitive firm that markets this type of carpet has a marginal cost of production of MC= 2.5 + 10q

Determine the market equilibrium price for this type of carpet. Also determine the production rate in the market,
Determine how much the typical firm will produce per week at the equilibrium price.
If all firms had the same cost structure, how many firms would compete at the equilibrium price computed in (a) above?

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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions