Answer to Question #68046 in Microeconomics for amelia Hutchens

Question #68046

With demand function P = 120 -2Q and MC= 20.
What is the optimal quantity and price for four identical firms.

Expert's answer

P = MC, that`s why 20 = 120-2*Q, Q =50 and P = 20, but If you need find optimal quantity for four firms, then we have that Q = 4*50 = 200.

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