Sport Tee Corporation manufactures T-shirts bearing the logos of professional football teams. The wholesale market for sport T-shirts is perfectly competitive. The manager forecasts the wholesale price of T-shirts next year to be $7.00. The firm's estimated marginal cost isSMC = 12 ? 0.005Q + 0.0000008Q2where Q is the number of T-shirts produced and sold each month. Sport Tee Corporation will have a fixed cost of $2,000 per month. Average variable cost at Sport Tee is
A. 12Q ? 0.0025Q2 + 0.000000266Q3
B. 12 ? 0.01Q + 0.0000024Q2
C. 12 ? 0.0025Q + 0.000000266Q2
D. 12 ? 0.0001Q + 0.000001Q2
E. none of the above
Answer: C
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