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

question 43

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
Now, suppose that the 2015 price forecast is drastically revised downward to $5.
-What is Bartech's profit-maximizing (or loss-minimizing) output for 2015?

• A) 0 units
• B) 1,000 units
• C) 2,000 units
• D) 3,000 units
• E) 4,000 units

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Definitions:

Ability or Personality

Ability or personality refers to the inherent talents or traits that influence an individual's performance and how they interact within a team or organization.

Conscious Evaluation

The deliberate and mindful assessment of ideas, options, or decisions based on criteria and judgment.

Experimentation

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Non-conformity

Behaviors or actions that do not comply with prevailing norms, expectations, or standards, often viewed in the context of individualism and innovation.