Question

5. A market contains a group of identical price-taking firms. Each firm has a marginal cost
curve MC(Q) = 2Q, where Q is the annual output of each firm. A study reveals that each firm
will produce if the price exceeds $20 per unit and will shut down if the price is less than $20.
The market demand curve for the industry is D(P) = 240- P/2. At the equilibrium market
price, each firm produces 20 units. What is the equilibrium market price, and how many firms
are in this industry?

Answers

Shut Up
you smell like dirty underwear

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