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

question 24

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.
-When Greene's output is 2,000 units, what is average variable cost (AVC) ?

• A) $20
• B) $48
• C) $62
• D) $72
• E) $85

Determine the optimal cash balance for firms using models like the BAT and Miller-Orr models.

Comprehend the effects of cash management decisions on opportunity costs and trading costs.

Understand the role and process of lockbox systems in improving cash management.

Identify the reasons for holding cash and the business activities it supports.

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