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

question 22

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 short-run marginal cost (SMC) ?

• A) $20
• B) $42
• C) $72
• D) $90
• E) $100

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