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Bartech,Inc

Question 83

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,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 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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