Bartech,Inc

question 79

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.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:

Wheel Communication Structure

is a system of information exchange characterized by a central figure through which all communications pass, resembling the spokes of a wheel.

Centralized Communication Network

A communication structure where all decision-making and messaging are concentrated at a central point within the organization.

Freewheeling

Engaging in an activity without restrictions or a fixed plan, allowing for creativity and spontaneity.

Restricted Communication

Limitations placed on the exchange of information, often to preserve confidentiality or for the purpose of control within organizations.