The market inverse demand curve for thrust bearings is P = 15 - 1.5Q, where Q is measured in hundreds of bearings per day and P is the price per bearing. The marginal cost is $3. Suppose two firms, which are Bertrand competitors, produce identical thrust bearings for this market. If this market were a perfectly competitive market, the market price would be $____.

Question

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In a perfectly competitive market, the market price equals the marginal cost. Given that the marginal cost is $3, the market price would also be $3.

The Market Inverse Demand Curve for Thrust Bearings Is P