What is the market equilibrium and price

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Reference no: EM13692488

There exists 10,000 firms in a market each with MC curve MC=2q

Where Q = quantity of production (of the firm).

Assume aggregate demand is 20,000 and independent of price.

a) What is the market equilibrium and price?

b) What happens to the equilibrium price and quantity if one firm drops out of the market?

Reference no: EM13692488

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