Bartech,Inc

question 88

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.Under the revised forecast how much profit loss) does Bartech,Inc.expect to earn?

• A)$0
• B)-$12,000
• C)$2,500
• D)$16,000
• E)$18,000

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