The figure given below shows the demand curve in the U.S.and the cost curves in U.S.and India. Figure: 15.4 In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.
MR: Marginal revenue curve in the U.S.
-According to Figure 15.4,the price and quantity of the good if produced by U.S.would be _____ and _____ respectively.

Question

The figure given below shows the demand curve in the U.S.and the cost curves in U.S.and India. Figure: 15.4  In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.
MR: Marginal revenue curve in the U.S.
-According to Figure 15.4,the price and quantity of the good if produced by U.S.would be _____ and _____ respectively.

Quizplus · Accepted Answer

The price and quantity of the good if produced by the U.S. would be where the demand curve intersects with the marginal cost curve, which is at P₂ and Q₂, respectively. This is where the marginal cost equals the marginal revenue, which is also equal to the price in a competitive market.

The Figure Given Below Shows the Demand Curve in the U.S.and