A1) Consider a perfectly competitive market. The industry demand curve is QD = 120 – 20P. The industry supply curve is Qs = 20P. What are the equilibrium price and quantity for this market? a) P°=3, Q'=60 b) P°=6, Q`=30 c) P'=6, Q`=0 d) P°=0, Q=120 e) None of the above

A1) Consider a perfectly competitive market. The industry demand curve is QD = 120 – 20P. The industry supply curve is Qs = 20P. What are the equilibrium price and quantity for this market? a) P°=3, Q'=60 b) P°=6, Q`=30 c) P'=6, Q`=0 d) P°=0, Q=120 e) None of the above

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 9MC

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Question

A1) Consider a perfectly competitive market. The industry demand curve is
QD = 120– 20P. The industry supply curve is Qs = 20P. What are the equilibrium price and
quantity for this market?
a) P°=3, Q*=60
b) P°=6, Q*=30
c) P'=6, Q=0
d) P°=0, Q*=120
e) None of the above

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