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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 24

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 2,000 units, what is average variable cost (AVC) ?


A) $20
B) $48
C) $62
D) $72
E) $85

Correct Answer:

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