The car manufacturing market consists of 100 identical factories, each with a marginal cost curve represented by MC =120 + 20 where Q represents the amount of cars offered. a) Derive the industry supply curve for cars. b) If the demand for cars is represented by P=250- 4Q, how many cars are bought at equilibrium? c)  Calculate the aggregate consumer and producer surplus at market equilibrium.

Macroeconomics
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ISBN:9781337617390
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Chapter5: Supply, Demand, And Price: Applications
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The car manufacturing market consists of
100 identical factories, each with a marginal
cost curve represented by MC =120 + 20
where Q represents the amount of cars
offered.
a) Derive the industry supply curve for cars.
b) If the demand for cars is represented by
P=250- 4Q, how many cars are bought at
equilibrium?
c)  Calculate the aggregate consumer and
producer surplus
at market equilibrium.

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