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

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Question

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
Oq-0, profit=-144

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