12A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the followingresults:Qd = 25,000 - 5,000P+ 25MQs = 240,000 + 5,000P-2,000P₁where P is price, M is income, and P₁ is the price of a key input. The forecasts for the next year are M = $15,000 and 1=$20. Average variable cost is estimated to beAVC=14-0.008Q + 0.000002Q²Total fixed cost will be $6,000 next year. What is the price forecast for next year?Multiple Choice$12$20$60$68OO

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12 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 the price of a key input. The forecasts for the next year are M = $15,000 and p1= $20. Average variable cost is estimated to be AVC=14-0.008 Q + 0.000002 Q² Total fixed cost will be $6,000 next year. What is the price forecast for next year? Multiple Choice $12 $20 $60 $68

12 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 the price of a key input. The forecasts for the next year are M = $15,000 and p1= $20. Average variable cost is estimated to be AVC=14-0.008 Q + 0.000002 Q² Total fixed cost will be $6,000 next year. What is the price forecast for next year? Multiple Choice $12 $20 $60 $68

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 2.2CE

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