A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: where P is price,M is income,and is the price of a key input.The forecasts for the next year are = $15,000 and = $20.Average variable cost is estimated to be Total fixed cost will be $6,000 next year.What is the firm's minimum average variable cost?
A) $ 2
B) $ 6
C) $ 8
D) $20
Correct Answer:
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