Answer to Question #218931 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? In addition to providing quantitative answers for the question, please also describe the approach you used to arrive at the conclusions.

Answer 1

If the marginal cost curve is given by the function MC = q^2 + 5q + 30, then the market price and market quantity can be found in point for which marginal revenue equals marginal cost MR = MC. So, we need additional data to calculate the market price and market quantity.