The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=288+q^2 and Marginal Cost curve MC=2q. Market demand is Q=807-2P. If the Marginal Willingness to pay increases by $10 at every quantity, what is the short-run market price?

The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=288+q^2 and Marginal Cost curve MC=2q. Market demand is Q=807-2P. If the Marginal Willingness to pay increases by $10 at every quantity, what is the short-run market price?

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 8CQ

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