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Consider a firm operating in a perfectly competitive market where it is given that the firm's fixed costs are completely sunk and amount to $100.

Consider a firm operating in a perfectly competitive market where it is given that the firm's fixed costs are completely sunk and amount to $100. The firm's average variable cost is defined by the function AVC = 5 + 0.05q, where q represents the quantity of output. If the market price is currently set at $15, determine the firm's profit.

a) $200

b)$500

c)$400

d)$300

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