The Manager of Greene Enterprises,Inc $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$

question 35

Multiple Choice

The manager of Greene Enterprises,Inc.,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 Enterprises produces 6,000 units,average variable cost (AVC) is $_________.

• A)$40
• B)$49.62
• C)$55
• D)$60
• E)$72.46

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Definitions:

Kansei Engineering

A product development methodology that incorporates consumer emotions, needs, and preferences into the design process to better meet user expectations.

Sensory Mechanisms

The physiological processes by which sensory organs and the nervous system receive and interpret stimuli from the environment.

Visual Cues

Elements in the environment or in communications that provide information or directional signals through sight.

Consumption

The use of goods and services by households, which involves the selection, purchase, use, maintenance, and disposal of products.