Market demand is given as Q_D= 75 - 2P.Market supply is given as Q_S= 2P + 15.Each identical firm has MC = 3Q and ATC = 2Q.What quantity of output will a typical firm produce

Question

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To find the quantity produced by a typical firm, set MC equal to the market price (P). First, find the equilibrium price by setting QD = QS: 75 - 2P = 2P + 15. Solving gives P = 15. Then, set MC = 3Q = 15, solving gives Q = 5.

Market Demand Is Given as QD = 75 - 2P

Market Demand Is Given as Q_D= 75 - 2P