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

question 6

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.What is the minimum average variable cost?

• A)$0
• B)$5.50
• C)$6.00
• D)$6.50
• E)$7.00

Recognize the strategic importance of targeting market niches for small businesses.

Identifying the reasons people choose to start their own businesses.

Understand the challenges and problems faced by small businesses, including financing issues and market adaptability.

Identify the advantages small businesses have over larger firms, including decision-making and adaptability to market demands.

---

Definitions:

Monopolistically Competitive

Pertaining to a market structure where many firms sell products that are similar but not identical, leading to competition based on price, quality, and marketing.

Average Variable Cost

Average Variable Cost is the total variable costs (costs that vary with production levels) divided by the quantity of output produced.

Profit-Maximizing

A strategy or point where a firm achieves the highest possible profit given its production costs and market conditions, often where marginal cost equals marginal revenue.

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical, allowing for slight differentiation and some pricing power.