In many communities, a restaurant that sells alcoholic beverages is required to have a license. Suppose that

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In many communities, a restaurant that sells alcoholic beverages is required to have a license. Suppose that the number of licenses is limited and that they may be easily transferred to other restaurant owners. Suppose that the conditions of this industry closely approximate perfect competition. If the average restaurant’s revenue is $100,000 a year, and if a liquor license can be leased for a year for $85,000 from an existing restaurant, what is the average variable cost in the industry _____________________. 

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