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. At what level of output will Bartech's average variable cost reach its minimum value?
A. 3,000 units
B. 2,000 units
C. 4,000 units
D. 6,000 units
E. 5,000 units
Answer: A
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