Answer to Question #85884 in Microeconomics for Ayanda Lubisi

Question #85884
The market supply curves and market demand curves for books are given as follows:
Supply curve: P = 0.000002Q Demand curve: P = 11 – 0.00002Q
The short-run marginal cost curve: MC = 0.1 + 0.0009Q
The equilibrium price of books is …
1. R100
2. R1
3. R50
4. R5
1
Expert's answer
2019-03-07T11:32:49-0500

Firstly, we should find "Q". 0.000002Q=11 – 0.00002Q; 0.000022Q=11; Q=500000 - equilibrium quantity

Secondly, The equilibrium price - P(s)=0.000002Q; P(s)=1; P(d)=11 – 0.00002Q; P(d)=1

So, The equilibrium price of book is 1R(second variant)


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