A firm with market power faces the following estimated demand and average variable cost functions: where is quantity demanded,P is price,M is income,and is the price of a related good.The firm expects income to be $40,000 and to be $2.Total fixed cost is $100,000.What is the estimated demand function for the firm?
A) = 71,000- 500P
B) = 39,000- 200P
C) = 39,000 - 500P
D) = 40,000 -200P
Correct Answer:
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