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Refer to Greene Enterprises, Inc AVC=880.026Q+0.000003Q2A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }

Question 37

Multiple Choice

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be

AVC=880.026Q+0.000003Q2A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-When Greene's output is 6,000 units, average variable cost (AVC) is


A) rising
B) falling
C) greater than short-run marginal cost
D) less than short-run marginal cost
E) both a and d

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