Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2021. Bartech's average variablecost function is estimated to be iAVC 10-0.003Q+0.00000050²Bartech expects to face fixed costs of $12,000 in 2021. How much profit (loss) does Bartech, Inc. expect to earn?Multiple Choice-$2,500$96,000$127,000$156,000$166,0000

The market price of the product is $28The average variable cost is AVC=10−0.003Q+0.0000005Q2Fixed…

Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2021. Bartech's average variable cost function is estimated to be AVC 10-0.0030 0.00000050² Bartech expects to face fixed costs of $12,000 in 2021. How much profit (loss) does Bartech, Inc. expect to earn? Multiple Choice -$2.500 $96,000 $127,000

Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2021. Bartech's average variable cost function is estimated to be AVC 10-0.0030 0.00000050² Bartech expects to face fixed costs of $12,000 in 2021. How much profit (loss) does Bartech, Inc. expect to earn? Multiple Choice -$2.500 $96,000 $127,000

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 7MC

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Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2021. Bartech's average variable cost function is estimated to be AVC = 10 − 0.003Q + 0.0000005Q2 Bartech expects to face fixed costs of $12,000 in 2021. What is the minimum average variable cost? a. $6.00 b. $5.50 c. $0 d. $6.50 e. $7.00
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