Determine industry output and price

Reference no: EM1375749

The demand for speciality glue is given as: P = 1200 - 6Q, where P is value per 100 pounds of specialty glue produced and Q is the amount manufactured 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

Reference no: EM1375749

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