Answer to Question #218752 in Economics for Thewilly

Question

Suppose the marginal cost curve is given by the function q^2 + 5q + 30. What will be market price and market quantity?

Answer 1

The market price of an asset or service is determined by the forces of supply and demand; the price at which quantity supplied equals quantity demanded is the market price.

In a perfectly competitive market, price equals marginal cost.