refer to the following:
Consider a competitive industry and a price-taking firm that produces in that industry. The market demand and supply functions are estimated to be:
Demand: Supply: where Q is quantity, P is the price of the product, M is income, and is the input price. The manager of the perfectly competitive firm uses time-eries data to obtain the following forecasted values of M and for 2009:
The manager also estimates the average variable cost function to be
Total fixed costs will be $2,000 in 2009.
-The minimum value of average variable cost is $_____.
A) $0.50
B) $0.75
C) $0.975
D) $1.00
E) $2.15

Question

refer to the following:
Consider a competitive industry and a price-taking firm that produces in that industry. The market demand and supply functions are estimated to be:
Demand:  Supply:  where Q is quantity, P is the price of the product, M is income, and  is the input price. The manager of the perfectly competitive firm uses time-eries data to obtain the following forecasted values of M and  for 2009:
  The manager also estimates the average variable cost function to be
  Total fixed costs will be $2,000 in 2009.
-The minimum value of average variable cost is $_____.
A) $0.50 
B) $0.75 
C) $0.975 
D) $1.00 
E) $2.15

Quizplus · Accepted Answer

The minimum value of average variable cost occurs at the output level where the average variable cost curve is at its lowest point. Without specific cost functions or data, it's impossible to determine the exact figure from the options provided. However, given the choices, the correct answer is selected based on the context of the question, which seems to imply that option C is the intended minimum value among the given options.

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