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

$$A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$$
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-When Greene's output is 2,000 units, 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 b and c

Question

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

$$A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$$ 
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-When Greene's output is 2,000 units, 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 b and c

Quizplus · Accepted Answer

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

$$A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$$ 
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-When Greene's output is 2,000 units, 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 b and c

Refer to Greene Enterprises, Inc AVC=88−0.026Q+0.000003Q2A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }AVC=88−0.026Q+0.000003Q2

Refer to Greene Enterprises, Inc $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$