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 income next year is forecasted to be $10,000 instead.What is the profit-maximizing output choice for the firm?
A)8,000
B)5,548
C)3,480
D)2,167
E)zero