00:01
Market demand is given as market demand qd equal to 550 minus 3p and market supply is qs which is equal to 9p and marginal cost is 4q and average total cost is 13.
00:23
Now first question answer is the price will the firm change.
00:29
So, we know we have to calculate it therefore at equilibrium condition qd equal to qs.
00:40
So, which implies 550 minus 3p equal to 9p from this we have 12p equal to 550.
00:50
So, p equal to 550 divided by 12.
00:54
So, the price will be the firm change that is at equilibrium condition the price will be 550 divided by 12 which is 45 .83.
01:12
Now, the second one the firm's equilibrium quantity.
01:17
So, at this place mc equal to p.
01:21
So, which implies mc is 4q, 4q equal to 45 .33 from this q equal to 45 .33 divided by 4 which is 11 .45.
01:36
So, q equal to 11 .45.
01:45
Now, we have to calculate the firm's total cost...