Bartech,Inc

question 2

Multiple Choice

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 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

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Definitions:

John Maynard Keynes

A British economist whose theories on the causes of prolonged unemployment and the importance of governmental fiscal and monetary policies founded Keynesian economics.

Federal Budget Deficit

The shortfall that occurs when the U.S. government's expenditures exceed its revenues within a fiscal year.

GDP

Gross Domestic Product, or GDP, represents the overall market value of all ultimate goods and services manufactured domestically in a specific timeframe.

Interest Rates

The cost of borrowing money or the return on investment for savings, usually expressed as a percentage of the total amount loaned or deposited.