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

question 33

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.
-The profit-maximizing (or loss-minimizing) output for Bartech is

• A) 0 units
• B) 500 units
• C) 1,000 units
• D) 2,000 units
• E) 6,000 units