Answer to Question #331475 in Microeconomics for Nthatii_n

Question #331475

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
Expert's answer
2022-04-21T18:08:40-0400

Firstly, we should find "Q"

"0.000002Q=11 \u2013 0.00002Q;\n 0.000022Q=11;" "Q=500000"– equilibrium quantity Secondly,

The equilibrium price – "P(s)=0.000002Q; P(s)=1; P(d)=11 \u2013 0.00002Q; P(d)=1So"

The equilibrium price of book is 1R.


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