Refer to the Following:
a Consulting Company Estimated Market Demand $$\mathrm { Q } _ { \mathrm { d } } = 25,000 - 5,000 P + 25 M$$

question 26

Multiple Choice

Refer to the following:
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:
$$\mathrm { Q } _ { \mathrm { d } } = 25,000 - 5,000 P + 25 M$$
$$Q _ { 5 } = 240,000 + 5,000 P - 2,000 P _ { I }$$
where P is price, M is income, and
$P _ { I }$ is the price of a key input. The forecasts for the next year are
$\hat { M }$ = $15,000 and
$\hat { P } _ { I }$ = $20. Average variable cost is estimated to be
$A V C = 14 - 0.008 Q + 0.000002 Q ^ { 2 }$
Total fixed cost will be $6,000 next year.
-What is the price forecast for next year?

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Definitions:

Limited Liability Partnership

Limited Liability Partnership (LLP) is a partnership in which some or all partners have limited liabilities, protecting their personal assets from the partnership's debts.

Limited Liability Company

An organizational model that merges the direct tax benefits of a partnership or sole proprietorship with the corporation's advantage of limited liability.

General Partnership

A business structure where two or more partners share unlimited liability for the company's debts and obligations.

Capital Account

An account on a nation's balance of payments that records investments and loans between the country and the rest of the world.