Market demand is given as Q_D= 40 - P.Market supply is given as Q_S= 3P.Each identical firm has MC = 5Q and ATC = 3Q.What is a firm's average total cost

Name: Market demand is given as Q D = 40 - P.Market supply is given as Q S = 3P.Each identical firm has MC = 5Q and ATC = 3Q.What is a firm's average total cost
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Quizplus · Accepted Answer

The firm's average total cost (ATC) is given as 3Q. If Q = 2 (since MC = 5Q and setting MC = P gives P = 10, then Q = 2), then ATC = 3(2) = $6.00.

Market Demand Is Given as QD = 40 - P

Market Demand Is Given as Q_D= 40 - P