9.15. A market contains a group of identical price-taking firms. Each firm has a marginal cost curve SMC(Q) 2Q, where Q is the annual output of each firm. A study reveals that each firm will produce if the price exceeds $20 per unit and will shut down if the price is less than $20 per unit. The market demand curve for the industry is D(P) 240 P/2,where P is the market price. At the equilibrium market price, each firm produces 20 units. What is the equilibrium market price, and how many firms are in this industry?

equilibrium market price = 40

Number of firms in the industry = 240

Explanation:

Let we assume the number of firms be N

And, at equilibrium

Marginal cost = market price

2Q = P i.e market price (i)

Also demand = supply at equilibrium  point

which equals to

= 240 × (P ÷ 2) = N × Q(ii)

So,

from (i) and (ii)

N i.e Number of firms in the industry = 240

since Q i.e Quantity =20 units

So,

P = 2Q

 = $40

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).

answer; complain or request hazard correction from your employer;