A Consulting Company Estimated Market Demand and Supply in a Perfectly

Question 61
Multiple Choice

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: img img where P is price,M is income,and img is the price of a key input.The forecasts for the next year are img = $15,000 and img = $20.Average variable cost is estimated to be img Total fixed cost will be $6,000 next year.What will the firm's profit (loss)be? A)$20,000 B)$26,000 C)$30,000 D)$36,000 E)$6,000,the firm shuts down and loses only its fixed costs.