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

question 12

Multiple Choice

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.
-At what level of output does average variable cost (AVC) reach its minimum value for Greene Enterprises?

• A) 800
• B) 3,144
• C) 3,800
• D) 4,333
• E) 51,672

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