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:

Malpractice Case

A legal case brought against a professional, such as a doctor or lawyer, for negligence or incompetence that results in harm to a client or patient.

Severe Complications

Serious, unexpected problems or developments that arise in the course of an illness, procedure, or situation.

Hypothetical Question

A type of question that presents an imagined situation to solicit an expert's opinion rather than facts.

Suffers A Loss

Experiences a reduction in value, resources, or money due to a particular event or transaction.