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

question 7

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 total cost (TC) ?

• A) $144,000
• B) $396,000
• C) $444,000
• D) $642,000
• E) $846,000

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Definitions:

Specimen

A sample of tissue, blood, or other material used for examination or study.

Microscope

An instrument designed to make small objects appear larger, using lenses or a combination of lenses to magnify the visual or digital image.

Body Tube

In microscopy, the part of a microscope that supports the eyepiece and connects it to the objective lenses.