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

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

Totalitarianism

A political system in which the state holds total authority over society and seeks to control all aspects of public and private life wherever possible.

Authoritarianism

A system of governance in which power is concentrated in the hands of a single authority, often with limited political freedoms.

Hashemite Kingdom

A monarchy in Western Asia, traditionally led by the Hashemite dynasty, known for its historic leadership in Jordan.

Monarchy

A government ruled by a king or queen, with succession of rulers kept within the family.