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Bartech,Inc AVC=100.003Q+0.0000005Q2A V C = 10 - 0.003 Q + 0.0000005 Q ^ { 2 }

Question 58

Multiple Choice

Bartech,Inc.is a firm operating in a competitive market.The manager of Bartech forecasts product price to be $28 in 2021.Bartech's average variable cost function is estimated to be AVC=100.003Q+0.0000005Q2A V C = 10 - 0.003 Q + 0.0000005 Q ^ { 2 } Bartech expects to face fixed costs of $12,000 in 2021.Now,suppose that the 2021 price forecast is drastically revised downward to $5.What is Bartech's profit-maximizing (or loss-minimizing) output for 2021?


A) 0 units
B) 1,000 units
C) 2,000 units
D) 3,000 units
E) 4,000 units

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