The market for toys is perfectly competitive, with the short-run market demand andsupply curves given byD: P = 200 -2Q. S: P = 100 + 3QA certain fırm in this industry has a short-run marginal cost of production of mc =10q.where q is the number of units of toys produced by the firm.What are the equilibrium industry price and quantity in the short run? Will the firm shutdown if the total variable cost-10q?O P-160, Q-20: shut downO P-160, Q-20: not shut downO P-20. Q=160; not shut downO P-20. Q-160; shut down

Equilibrium is established at such a price where quantity demanded equals quantity supplied.

Answered: The market for toys is perfectly…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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