Market demand is given as Q_D= 200 - P.Market supply is given as Q_S= 4P + 100.Each identical firm has MC = 4Q and ATC = 2Q.What quantity of output will a typical firm produce

Question

Quizplus · Accepted Answer

The correct answer is A because at the equilibrium price of P = 100, the quantity demanded is Q = 100 and the quantity supplied is also Q = 100. Therefore, each firm will produce Q = 10 units of output.

Market Demand Is Given as QD = 200 - P

Market Demand Is Given as Q_D= 200 - P