1.The following are equations for market demand and supply:

Demand, MV:P = 170 - 10(Q)

Supply, MC:P = 20 + 5(Q)

P = Price; Q = Quantity

Solve for the equilibrium price and quantity if this is a perfectly competitive market.

P = P

170 - 10Q = 20 + 5Q

170 - 20 = 5Q + 10Q

150 = 15Q

150 / 15 = 15Q / 15

10 = Q

Demand (Marginal Value): P = 170 - 10Q = 170 - 10(10) = 170 - 100 = 70

Supply (Marginal Cost): P = 20 + 5Q = 20 + 5(10) = 20 + 50 = 70

Equilibrium price is 70.

Solve the same problem as in the question, above, but this time assuming the market is served by a monopoly firm.