Answer to Question #64933 in Macroeconomics for tavonn

Question

At the medium level of demand (D M), the equilibrium price will be $________ and the equilibrium quantity will be ________ units.

Answer 1

If 100 units of output is the optimal and most profitable level of production for the firm, then at the medium level of demand (D M), the equilibrium price will be $20 and the equilibrium quantity will be 100 units.