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Find the equilibrium quantity and price in the following market:
Demand is P=190-3Q
Supply is P=10+5Q
-What is the point elasticity of demand at equilibrium?
-What is the marginal revenue at equilibrium?(use equation connecting MR and P)
- If marginal cost is constant $8 dollars, should we keep producing and selling? until which point we can keep producing?
- If total revenue is P*Q (hint: use the demand function P) calculate TR and MR and find the equilibrium quantity where MC=MR. what is the price?
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