A price-setting firm faces the following estimated demand and average variable cost functions: where is the 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 $53.Total fixed cost is $2,600,000.What is the estimated demand function for the firm?
A) = 1,040,000 - 2,000P
B) = 800,000 - 4,000P
C) = 800,000 - 500P
D) = 1,600,000- 2,000P
Correct Answer:
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