Answer to Question #85885 in Microeconomics for Ayanda Lubisi

Question #85885
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 short-run equilibrium level of output is …
1. 1
2. 1 000
3. 10 000
4. 10 0000
1
Expert's answer
2019-03-06T10:16:46-0500

In equilobrium Qd = Qs, so:

0.000002Q = 11 - 0.00002Q,

0.000022Q = 11,

Q = 500000 units.

So, the short-run equilibrium level of output in the industry is 500000.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS