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.
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 +