The production of toilet paper in a perfectly competitive market is characterized by the inverse supply curve (marginal cost curve) P = 4Q, where Q is measured in millions of 4-roll packs per month. The inverse demand for toilet paper is P = 10 - 6Q.
The market equilibrium price of toilet paper is ____ and the market equilibrium quantity is ____ million packs.
A) 4; 1
B) 1; 4
C) 2; 2
D) 3; 2

Question

Quizplus · Accepted Answer

The Answer of The production of toilet paper in a perfectly competitive market is characterized by the inverse supply curve (marginal cost curve) P = 4Q, where Q is measured in millions of 4-roll packs per month. The inverse demand for toilet paper is P = 10 - 6Q.
The market equilibrium price of toilet paper is ____ and the market equilibrium quantity is ____ million packs.
A) 4; 1
B) 1; 4
C) 2; 2
D) 3; 2

The Production of Toilet Paper in a Perfectly Competitive Market