Bartech,Inc $A V C = 10 - 0.003 Q + 0.0000005 Q ^ { 2 }$

question 5

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 $A V C = 10 - 0.003 Q + 0.0000005 Q ^ { 2 }$ Bartech expects to face fixed costs of $12,000 in 2021.Now,suppose that the 2021 price forecast is drastically revised downward to $5.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

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Definitions:

Internal Conflicts

Psychological struggles that arise from opposing desires, impulses, or feelings within a person.

Self-actualizing

The process of realizing and expressing one's own capabilities and creativity, often considered the pinnacle of psychological development in Maslow's hierarchy of needs.

Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Construal

The way an individual makes sense of the world around him.