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.Suppose that income next year is forecasted to be $10,000 instead.What will the firm's profit (loss) be?
A) zero
B) $2,500
C) -$3,550
D) -$2,856
E) -$6,000
Correct Answer:
Verified
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