industry output and price
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The demand for speciality glue is given as follows: P = 1200 - 6Q, where P is price per 100 pounds of specialty glue produced and Q is the amount produced and sold in hundreds of pounds. The marginal cost of producing glue for the entire glue industry is as follows: MPC = 700 + 2Q. What will industry output and price be in the absence of regulation
a. Q* = 35.71, P* = $98.57
b. Q* = 35.71, P* = $985.74
c. Q* = 357.10, P* = $985.74
d. Q* = 3571.06, P* = $9.86
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Determine industry output and price.
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Total revenue = P*Q = (1200 - 6Q)Q = 1200Q - 6Q^2
Then marginal ...
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