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 beAVC = 10 ? 0.003Q + 0.0000005Q2Bartech expects to face fixed costs of $12,000 in 2015. What is the minimum average variable cost?
A. $6.50
B. $0
C. $5.50
D. $6.00
E. $7.00
Answer: C
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