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 firm's profit?
A) $147,000
B) $120,000
C) $220,000
D) $335,000
Correct Answer:
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