use the following data for a competitive industry and a price-taking firm that operates in this market.
Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2009. Bartech's average variable cost function in 2005 is estimated to be
Bartech expects to face fixed costs of $12,000 in 2009.
-At what level of output will Bartech's average variable cost reach its minimum value?
A) 2,000 units
B) 3,000 units
C) 4,000 units
D) 5,000 units
E) 6,000 units

Question

use the following data for a competitive industry and a price-taking firm that operates in this market.
Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2009. Bartech's average variable cost function in 2005 is estimated to be
  Bartech expects to face fixed costs of $12,000 in 2009.
-At what level of output will Bartech's average variable cost reach its minimum value?
A) 2,000 units 
B) 3,000 units 
C) 4,000 units 
D) 5,000 units 
E) 6,000 units

Quizplus · Accepted Answer

The Answer of use the following data for a competitive industry and a price-taking firm that operates in this market.
Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2009. Bartech's average variable cost function in 2005 is estimated to be
  Bartech expects to face fixed costs of $12,000 in 2009.
-At what level of output will Bartech's average variable cost reach its minimum value?
A) 2,000 units 
B) 3,000 units 
C) 4,000 units 
D) 5,000 units 
E) 6,000 units

Use the Following Data for a Competitive Industry and a Price-Taking