Use the Following Data for a Competitive Industry and a Price-Taking

question 84

Multiple Choice

Use the following data for a competitive industry and a price-taking firm that operates in this market.
Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2015. 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 2015.
-At what level of output will Bartech's average variable cost reach its minimum value?

• A) 2,000 units
• B) 3,000 units
• C) 4,000 units
• D) 5,000 units
• E) 6,000 units

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Definitions:

Hyperglycemia

A condition characterized by a high level of glucose (sugar) in the blood.

Hypoglycemia

Deficiency of sugar in the blood.

Insulin Shock

A condition of excess insulin or lack of blood sugar.

Intubation

Insertion of a tube into the larynx for entrance of air.