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?

Question

anonymous · Answer

Are those "Q"s in MC and ATC, market quantity or individual quantities?

anonymous · Answer

if they are individual quantities, answer is that;
QD = QS
200 - 3P = 2P + 100
5P = 100
market price is = 20

Firms will produce under the condition of marginal revenue = marginal cost.
MR=MC
Marginal revenue equals market price in perfect competitive markets.
0.5q = 20
q = 40
each firm produces a quantity of 40

anonymous · Answer

omg thank you so mcuh @olp135

anonymous · Answer

no problem @0202