Question

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

Answer 1

Firstly, we should find "Q"

$0.000002Q=11 – 0.00002Q; 0.000022Q=11;$ $Q=500000$– equilibrium quantity Secondly,

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

The equilibrium price of book is 1R.