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

question 29

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'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

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Definitions:

Line-Angle Structures

Simplified structural representations of molecules in organic chemistry using lines to represent chemical bonds and vertices to represent carbon atoms.

Hydrogenation

The chemical reaction of adding hydrogen to an organic compound, often used to convert unsaturated bonds to saturated ones.

Cyclobutene

A cyclic hydrocarbon molecule consisting of a ring of four carbon atoms connected by double and single bonds.

Cyclopentene

A cyclic alkene with a five-membered ring, characterized by the presence of a carbon-carbon double bond, making it reactive in chemical syntheses.