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28 Sep 2019
There exist 10,000 firms in a market each with MC curve MC=2q where q=quantity of production (of the firm). Assume aggregate demand is 20,000 and independent of price.
A) What is the market equilibrium and price?
B) What happens to the equilibrium price and quantity if one firm drops out of the market for some exogenous reason?
Reapeat this question if aggregate demand is: q= 40,000-5000p
There exist 10,000 firms in a market each with MC curve MC=2q where q=quantity of production (of the firm). Assume aggregate demand is 20,000 and independent of price.
A) What is the market equilibrium and price?
B) What happens to the equilibrium price and quantity if one firm drops out of the market for some exogenous reason?
Reapeat this question if aggregate demand is: q= 40,000-5000p
Darryn D'SouzaLv10
28 Sep 2019
