Question

Market demand is given as QD = 200 – 3P. Market supply is given as QS = 2P + 100. Each identical firm has MC = 0.5Q and ATC = 0.25Q. What quantity of output will a typical firm produce?

Answer 1

In getting the quantity output of the firm in your example, the formula would be market demand equals to market supply in getting the the value of P which is the marginal cost. Then you will get the Q in by equating the marginal cost to its quantity so the answer is Q= 40

Answer 2

Upon solving the problem presented with multiple values givens, I’ve come up that the quantity of output that a typical firm would produce is 40. I am hoping that this answer has satisfied your query about this specific question, thank you and have a nice day.