The following questions refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be

Greene Enterprises faces total fixed costs (TFC) of $300,000.
-At Greene Enterprises, average variable cost (AVC) reaches its minimum value at $________.
A) $28.00
B) $31.67
C) $39.64
D) $43.33
E) $82.00

Question

The following questions refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be
  
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-At Greene Enterprises, average variable cost (AVC) reaches its minimum value at $________.
A) $28.00 
B) $31.67 
C) $39.64 
D) $43.33 
E) $82.00

Quizplus · Accepted Answer

The minimum value of AVC is typically found at the point where the marginal cost (MC) curve intersects the AVC curve from below. In this case, $31.67 is the minimum value given for AVC.

The Following Questions Refer to Greene Enterprises, Inc