Macmillan Learning (Figure: Price and Quantity I) The graph shows a firm's marginal cost curve. This firm operates in a perfectly competitive industry with market demand and supply curves given by Qd=100-8P and Q = =-20+2P, respectively, where Qis measured in millions of units. Based on the figure, how many units of output will the firm produce at the equilibrium price? Price ($) 24 21 18 15 12- 9 222522 MC 800 1,100 1,200 400 6 3 0 2 4 6 8 10 12 14 16 18 20 Quantity (100s)

Macmillan Learning (Figure: Price and Quantity I) The graph shows a firm's marginal cost curve. This firm operates in a perfectly competitive industry with market demand and supply curves given by Qd=100-8P and Q = =-20+2P, respectively, where Qis measured in millions of units. Based on the figure, how many units of output will the firm produce at the equilibrium price? Price ($) 24 21 18 15 12- 9 222522 MC 800 1,100 1,200 400 6 3 0 2 4 6 8 10 12 14 16 18 20 Quantity (100s)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 8 Consider a firm operating in a competitive market. The firm is producing 50 units of output, has an average total cost of production equal to 7 dirhams, and is earning 350 dirhams economic profit in the short run. What is the current market price?
I need help solving the: 1. The average cost of production 2. The marginal cost of production
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