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 M̂ = $15,000 and p̂1 = $20. Average variable cost is estimated to be AVC = 14 − 0.008Q + 0.000002Q2   Total fixed cost will be $6,000 next year. What is the firm's minimum average variable cost?   a. $8 b. $2 c. $20 d. $6

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