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 optimal level of production for the firm is
A) 1,000
B) 1,500
C) 2,000
D) 2,500
E) none of the above

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 optimal level of production for the firm is
A) 1,000 
B) 1,500 
C) 2,000 
D) 2,500 
E) none of the above

Quizplus · Accepted Answer

The Answer of 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 optimal level of production for the firm is
A) 1,000 
B) 1,500 
C) 2,000 
D) 2,500 
E) none of the above

Refer to the Following