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.The firm should ______________ because _______________.

Question

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.The firm should ______________ because _______________.

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The Answer of 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.The firm should ______________ because _______________.

A Price-Setting Firm Faces the Following Estimated Demand and Average