The market demand for a type of carpet known as KP-7 has been estimated P =40 -

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The market demand for a type of carpet known as KP-7 has been estimated P =40 - 0.25Q, where P is price (S/yard) and Q is rate of sales (hundreds of yards per month).

The market supply is expressed as: P = 5.0 + 0.05Q.

A typical firm in this market has a total cost function ghat as:

C = 100 - 20.0q + 2.0q ²

a. Determine the equilibrium market output rate and price.

b. Determine the output rate for a typical firm.

c. Determine the rate of profit (or loss) earned by the typical firm.

Related Book For answer-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Posted Date: Nov 25, 2018 11:28 PM

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The market demand for a type of carpet known as KP-7 has been estimated P =40 -

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a When Demand meets Supply for equilibrium Price and Quan... View the full answer

Microeconomics

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