Suppose that a perfectly competitive industry consists of 192 firms and fixed cost of an individual firm is 288 half of which is sunk fixed cost while the average variable cost is 4q. Market demand is given by Q-1440-12P. Find the equilibrium output and profit, respectively. q=5, profit--188 q-24, profit-768 q=12, profit-144 q-0, profit144

Suppose that a perfectly competitive industry consists of 192 firms and fixed cost of an individual firm is 288 half of which is sunk fixed cost while the average variable cost is 4q. Market demand is given by Q-1440-12P. Find the equilibrium output and profit, respectively. q=5, profit--188 q-24, profit-768 q=12, profit-144 q-0, profit144

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

I need solutions of d,e
Suppose that a perfectly competitive firm faces a market price of $12 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output level of 1,800 units. If the firm produces 1,800 units, its average variable costs equal $7.00 per unit, and its average fixed costs equal $1.00 per unit. What is the firm's profit-maximizing (or loss-minimizing) output level? What is the amount of its economic profits (or losses) at this output level?
Hh.95.
Start from a market with perfect competition. For a representative producer, the long-term marginal cost is given by LMC=9Q2−20Q+50LMC=9Q2−20Q+50 and the long-term total cost function is LTC=3Q3−10Q2+50QLTC=3Q3−10Q2+50Q Assume that the price on the market right now is SEK 50. a) How much profit or loss does the producer make in the initial situation? b) Describe in detail what will happen in the market and why c) What will the equilibrium price be? d) how much will our producer produce at market equilibrium?
A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 60 + 5Q², where Q is the annual output of a fırm. The market demand curve is Qº = 600 – 50P, where P is the market price. %3D 1. What is the each firm's short-run supply curve? 2. What is the short-run industry supply curve? 3. Determine the short-run equilibrium price and quantity in this industry.
1. Consider the case of a perfectly competitive industry with n identical firms. Each firm's total cost function is given by Ci(q) = 100 + 10q+q² The demand for the good is given by Qd = 400 - 4p a) Find the(long-run)equilibrium in the market. b) Calculate the equilibrium total surplus or welfare. 9 i = 1, ..., n
The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the total cost equation of an individual firm in the industry is given by the expressionTC 1000+2Q+0.01Q2 At profit maximizing level what is firm total cost, total revenue and marginal cost
In a perfectly competitive market, suppose that there are 1280 firms. Market demand is given by Q-1600-4P. All fixed costs are sunk and Total fixed cost is $120 and average variable cost is 160q. Find the equilibrium market price and market output, respectively: $160, 960 $300, 400 $100, 1200 $200, 800
urgent
Suppose there is a perfectly competitive industry where all the firms are identical with identical cost curves. Furthermore, suppose that a representative firm's total cost is given by the equation TC = 100+ q² + 2q where q is the quantity of output produced by the firm. You also know that the market demand for this product is given by the equation P= 1000 - 2Q where Q is the market quantity. In addition you are told that the market supply curve is given by the equation P = 100+ Q. What is the firm's profit maximizing level of production? (Note: 1. If your answer is 100, please key in 100. There is no need to key in 100.0 or 100.00. 2. Please key in a number directly. Please do not key in "unit")
Suppose that a perfectly competitive firm faces a market price of $7 per unit. The output level corresponding to a marginal cost of $7 per unit is 1,000 units. At 1,000 units, its average variable costs equal $8 per unit, and its average fixed costs equal $1 per unit. The firm's profit-maximizing (or loss-minimizing) output level = . Write number only. The firm's economic profit (or loss) at this output level = . Write either profit number or loss number: e.g. profit 2000.
Answer Box: -5,0,3,5,10,30,45,50, continue to produce, shut down, Other