Wednesday
July 30, 2014

Homework Help: economics

Posted by elizabeth on Monday, October 17, 2011 at 9:10pm.

5. A market contains a group of identical price-taking firms. Each firm has a marginal cost
curve MC(Q) = 2Q, where Q is the annual output of each firm. A study reveals that each firm
will produce if the price exceeds $20 per unit and will shut down if the price is less than $20.
The market demand curve for the industry is D(P) = 240- P/2. At the equilibrium market
price, each firm produces 20 units. What is the equilibrium market price, and how many firms
are in this industry?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Advanced MicroEconomics - In a competitive market, there are two groups of ...
Advanced MicroEconomics - In a competitive market, there are two groups of firms...
managerial economicsQ3 - Suppose the inverse market demand equation is P = 80 íV...
economics - suppose a competitive market consists of identical firms with a ...
Economics - Yeah, so I'm in urgent need of help with this homework. 1. Assume ...
economics - perfectly competitive industry. Each firm having identical cost ...
home economics - a firm produces 20 units of output at a market price of #5, a ...
ECONOMICS - Two price setting firms have the same price and marginal revenue ...
Economics - There are 10 identical consumers whose demand is D: p = 20 - 10q. ...
economics - The graph on the left shows the short-run marginal cost curve for a ...

Search
Members