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

question 60

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.
-What is the minimum average variable cost?

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

---

Definitions:

Embryonic Tissue

Specialized tissues that form during the early stages of embryonic development, leading to the formation of various organs and structures.

Induction

Ability of a chemical or a tissue to influence the development of another tissue.

Membrane Depolarizes

The process by which a cell membrane's voltage becomes less negative, leading to the possible firing of an action potential in neurons.

Sperm

Male gamete having a haploid number of chromosomes and the ability to fertilize an egg, the female gamete.