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nakungth nakungth
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6 years ago
Assume the market for tortillas is perfectly competitive.  The market supply and demand curves for tortillas are given as follows:       
supply curve: 
   P = .000002Q    demand curve: P = 11 - .00002Q       
The short run marginal cost curve for a typical tortilla factory is:
   MC = .1 + .0009Q

a.   Determine the equilibrium price for tortillas. 
b.   Determine the profit maximizing short run equilibrium level of output for a tortilla factory. 
c.   At the level of output determined above, is the factory making a profit, breaking-even, or making a loss?  Explain your answer.
d.   Assuming that all of the tortilla factories are identical, how many tortilla factories are producing tortillas?
Textbook 
Microeconomics

Microeconomics


Edition: 8th
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CanihCanih
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6 years ago
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nakungth Author
wrote...

6 years ago
Thanks
Morgan-C
wrote...

Yesterday
Good timing, thanks!
nsak
wrote...

2 hours ago
Just got PERFECT on my quiz
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