Find the supply function and its market clearing price

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Reference no: EM13239664

Management has estimated a competitive industry's demand function to be:
Q= 4,500 - 25P

There are 90 identical profit-maximizing, price taker firms in the industry, each with an average variable cost curve of Ave = $8 +$0.75Q and fixed costs of $600 per hour. Q is the output per hour for the firm.

Find the supply function, its market clearing price, the profit maximizing output of the typical firm, and its hourly profit.

Reference no: EM13239664

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