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Sport Tee Corporation manufactures T-shirts bearing the logos of professional baseball and football teams. The wholesale market for sport T-shirts is perfectly competitive.The manager forecasts the wholesale price of T-shirts next year to be $7.00. The firm's estimated marginal cost is where Q is the number of T-shirts produced and sold each month. Sport Tee Corporation will have a fixed cost of $2,000 per month.
-Average variable cost at Sport Tee is
A) 12 - 0.01Q + 0.0000024Q2
B) 12 - 0.0025Q + 0.000000266Q2
C) 12 - 0.0001Q + 0.000001Q2
D) 12Q -0.0025Q2 + 0.000000266Q3
E) none of the above
Correct Answer:
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