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Lunna [17]
3 years ago
7

Equilibrium in the market-place means that quantity supplied 'Qs' equals quantity demanded 'Qd'.

Business
1 answer:
steposvetlana [31]3 years ago
5 0

Answer:

P = 380

Explanation:

At equilibrium, we have:

Qs = Qd

Since Qs = 1,050 and Qd = 2,000 – 2.5P, we therefore have:

1,050 = 2,000 – 2.5P

We now proceed to rearrange and solve for P as follows:

1,050 - 2000 + 2.5P = 0

2.5P = 2,000 - 1,050

2.5P = 950

P = 950 / 2.5 = 950 ÷ 2.5

P = 380

Therefore, the equilibrium price 'P' is equal to 380.

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4 years ago
A firm is producing 24 units of output. At the 24th unit of output, marginal revenue is $5, and marginal cost is $4; at the 25th
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Answer:

False.

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(1) Units produced = 24 units of output

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Marginal cost = $4

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At the 25th unit of output,

Marginal revenue = $4.50

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MR = MC

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Marginal revenue = $4

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A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.

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3 years ago
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Answer:

$125,000

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