Use the following equations for the following two questions
Demand: P=120-Q
Marginal private cost: P=30+1/2Q
Marginal social cost: MC S =30+Q
-What is the private equilibrium quantity and price?
A)Q=60, P=60
B)Q=45, P=75
C)Q=12, P=108
D)Q=75, P=45

Question

Quizplus · Accepted Answer

To find the private equilibrium quantity and price, set the demand equation equal to the marginal private cost equation: 120-Q = 30+1/2Q. Solving this equation for Q gives Q=60. Substituting Q=60 into either the demand equation or the marginal private cost equation gives P=60.

Use the Following Equations for the Following Two Questions