A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the...

 

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A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: Qd = 25,000 - 5,000P + 25M Qs = 240,000 + 5,000P 2,000P1 where P is price, M is income, and P1 is Average variable cost is estimated to be AVC= 14 -0.008Q + 0.000002Q2 to be $10,000 instead. What will the firm's profit (loss) be? e price of a key input. The forecasts for the next year are M = $15,000 and P1 = $20. Total fixed cost will be $6,000 next year. Suppose that income next year is forecasted zero $2,500 -$3,550 -$2,860 -$6,000 A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: Qd = 25,000 - 5,000P + 25M Qs = 240,000 + 5,000P 2,000P1 where P is price, M is income, and P1 is Average variable cost is estimated to be AVC= 14 -0.008Q + 0.000002Q2 to be $10,000 instead. What will the firm's profit (loss) be? e price of a key input. The forecasts for the next year are M = $15,000 and P1 = $20. Total fixed cost will be $6,000 next year. Suppose that income next year is forecasted zero $2,500 -$3,550 -$2,860 -$6,000

Answer rating: 100% (QA)

The profit loss will be 2860 The demand equation is Qd 25000 5000P 25M Substituting in the given val... View the full answer