Bartech, Inc. is a firm operating in a competitive market - 94888

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  • From: Economics, Macroeconomics
  • Posted on: Wed 20 Jan, 2016
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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 2010. Bartech's average variable cost function in 2010 is estimated to be AVC = 10 – 0.003Q + 0.0000005Q2 Bartech expects to face fixed costs of $12,000 in 2010. -Determine the firm’s supply curve -Determine the profit maximizing (or loss minimizing) output for Bartech, given that P = $28.
Solution Description

VC = Q * AVC

= Q (10 - 0.003Q + 0.0000005Q^2)

= 10Q - 0.003Q^2 + 0.0000005Q^3

TC = FC + VC = 12000 + 10Q - 0.003Q^2 +