Question

Consider a perfectly competitive market in the short run, assume that the demand curve is given as shown below P=100-4Q, also you are told that the total cost is given as TC=50+4Q+2Q^2 and the marginal cost MC=4+4Q... what is the market equilibrium price and quantity?

Answer 1

Answer to Question #90671, Economics / Microeconomics

In a perfectly competitive market in the short run supply function =MC

Demand Function is given by $P = 4 + 4Q$

$$100 - 4Q = 4 + 4Q$$ $$96 = 8Q$$ $$Q = 12, p = 4 + 4 * 12 = 52$$

Answer provided by https://www.AssignmentExpert.com