Unformatted text preview: P = MC , or Q P + = 40 . This means that each firm’s supply curve is 40= P Q if P > 40 and zero if P < 40. Therefore market supply equals ) 40 ( 12P and in equilibrium this must equal market demand, P 2 360. Therefore the equilibrium price is P = 60. At this price, each firm produces 20 units of output....
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This note was uploaded on 01/30/2011 for the course 730 368 taught by Professor Bryant during the Spring '08 term at Rutgers.
 Spring '08
 Bryant

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