How can we get market equilibrium price

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Question: Suppose there are 10 firms producing fresh mochi ice cream in the Los Angeles area. The production function for each firm is given by Q(K, L) = K v L, the rental rate per machine is $2000 and the wage is $36. The capital for each firm is fixed at 12 in the short run. The Los Angeles demand for fresh mochi ice cream is given by QD = 1000 - 80P. Determine the quantity produced by each firm in the short run. Hint: This question asks you to put together many of the concepts from the beginning of producer theory. We have done each piece separately, and now let's figure out how they fit together. To start, we know that we could figure out how much each firm produces if we knew the market equilibrium price. How can we get market equilibrium price?

Reference no: EM131444837

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