Answer to Question #85888 in Microeconomics for Ayanda Lubisi

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
Assuming all firms in the market are identical, how many firms are producing books?
1. 5 firms
2. 50 firms
3. 500 firms
4. Given the information provided, it cannot be determined.

Answer 1

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