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.
-What is the minimum average variable cost?
A) $0
B) $5.50
C) $6.00
D) $6.50
E) $7.00

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.
-What is the minimum average variable cost?
A) $0 
B) $5.50 
C) $6.00 
D) $6.50 
E) $7.00

Quizplus · Accepted Answer

The minimum average variable cost occurs at the lowest point of the average variable cost curve. Without specific cost data or a graph, it's impossible to determine the exact figure from the options provided. However, given the choices, $5.50 is the lowest cost option listed, suggesting it is the minimum average variable cost among the given options.

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