n? Assume the market for nachos is perfectly competitive. The market supply and demand curves for nachos

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Assume the market for nachos is perfectly competitive. The market supply and demand curves for nachos are given as follows: Supply curve: P = 0.000002Q Demand curve: P = 11 - 0.00002Q. The short run marginal cost curve for a typical nachos factory is: MC = 0.1 +0.0009Q (a) Determine the equilibrium price for nachos. [1.5] (b) Determine the profit maximizing short run equilibrium level of output for a nachos factory. [1.5] (c) Assuming that all of the nachos factories are identical, how many nachos factories are producing nachos? [1] Assume the market for nachos is perfectly competitive. The market supply and demand curves for nachos are given as follows: Supply curve: P = 0.000002Q Demand curve: P = 11 - 0.00002Q. The short run marginal cost curve for a typical nachos factory is: MC = 0.1 +0.0009Q (a) Determine the equilibrium price for nachos. [1.5] (b) Determine the profit maximizing short run equilibrium level of output for a nachos factory. [1.5] (c) Assuming that all of the nachos factories are identical, how many nachos factories are producing nachos? [1]

Answer rating: 100% (QA)

a P 0000002Q b P 11000002Q From a and b we get 0000002Q 1... View the full answer