In a perfectly competitive industry with 60 firms, consider an individual firm's fixed cost is $64, half
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Question:
In a perfectly competitive industry with 60 firms, consider an individual firm's fixed cost is $64, half of which is sunk and the other half is non-sunk ,and the average variable cost is $2q. The market demand is expressed by the equation Q = 400 - 5P. Determine the equilibrium output and profit for the firm, with the following options:
Question 9 options:
Q = 300, profit = $14
Q = 300, profit = -$14
Q = 0, profit = -$192
Q = 5, profit = -$14
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