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A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: where P is price,M is income,and is the price of a key input.The forecasts for the next year are = $15,000 and = $20.Average variable cost is estimated to be Total fixed cost will be $6,000 next year.Suppose that income for next year is forecasted to be $9,000 instead.What is the revised price forecast for next year?
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