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
AVC = 10 - 0.003Q + 0.0000005Q2
Bartech expects to face fixed costs of $12,000 in 2015. The profit-maximizing (or loss-minimizing) output for Bartech is
- 0 units
- 500 units
- 1,000 units
- 2,000 units
- 6,000 units