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 Bartech expects to face fixed costs of $12,000 in 2021.Now,suppose that the 2021 price forecast is drastically revised downward to $5.Under the revised forecast how much profit (loss) does Bartech,Inc.expect to earn?
A) $0
B) -$12,000
C) $2,500
D) $16,000
E) $18,000
Correct Answer:

Verified
Correct Answer:
Verified
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