This is a new post which is a complement to the most recent post
Hi guys,
Could not get question 5 p193. Answer states that P = MC = AC.
I tried to get to the answer from going staight from Price to Marginal Cost by doing the following:
93 - 1.5Q = 2 + 8Q by doing so I get an equilibrium quantity different from 8. Can somebody explain me why? Since P = MC = AC, I don’t get why the above equation is not valid. Has this something to do with the difference between minimum price and profit maximization?!
Thanks for the feed!