The market for ice-cream cones is described by the following supply and demand equations: $Q^{S} = 6000 P$ and $Q^{D} = 15000 - 4000 P$ , where $P$ is the price measured in dollars, $Q^{S}$ is the quantity supplied, and $Q^{D}$ is the quantity demanded. Each identical firm has $MC = 0.05 Q$ and $ATC = 0.025 Q$ . 1) What quantity of output will a typical firm produce? 2) What is a firm's average total cost at its profit-maximizing output? 3) How much profit will a typical firm earn?

Question

student submitted image, transcription available below

The market for ice-cream cones is described by the following supply and demand equations:

Q^{S} = 6000 P

and

Q^{D} = 15000 - 4000 P

, where

P

is the price measured in dollars,

Q^{S}

is the quantity supplied, and

Q^{D}

is the quantity demanded. Each identical firm has

MC = 0.05 Q

and

ATC = 0.025 Q

. 1) What quantity of output will a typical firm produce? 2) What is a firm's average total cost at its profit-maximizing output? 3) How much profit will a typical firm earn?

Accepted Answer

Expert Answer to -  The market for ice-cream cones is described by the following supply and demand equations: QS=6000P

Answer

Solution for -  The market for ice-cream cones is described by the following supply and demand equations: QS=6000P

Answer

This an additional answer to -  The market for ice-cream cones is described by the following supply and demand equations: QS=6000P

(Solved): The market for ice-cream cones is described by the following supply and demand equations: QS=6000P ...

View Expert Answer

Expert Answer

Buy This Answer $5

Place Order

We Provide Services Across The Globe